Another Big Win for the Revitalized Merchandise Mart

The comeback of Chicago’s Merchandise Mart just added another headline name to its tenant roster. Berlin Packaging, a global supplier with $2.5 billion in annual sales, is officially moving its headquarters from the West Loop to River North’s iconic behemoth. The company has leased 38,554 square feet on the fourth floor, trading in its 525 W. Monroe Street address for a front-row seat to one of the most ambitious office makeovers in Chicago.

And it’s not just a fresh coat of paint. The Mart’s owner, Vornado Realty Trust, has invested tens of millions in sweeping renovations to reimagine the 3.7 million-square-foot building. That includes dramatic new common areas, improved amenities, and a more hospitality-forward experience — part of a multiyear capital strategy that now appears to be paying off in a tough market.

Berlin Packaging’s move is just the latest in a string of momentum-building wins. Last fall, Medline Industries tripled its footprint in the building to over 160,000 square feet. Advertising agency Highdive, one of the fastest-growing firms in the region, also signed on to relocate its HQ there. And while Grubhub and Kin Insurance took subleased space, they still reflect the broader trend: companies want well-located, well-amenitized space that feels worth the commute.

That’s especially true in a post-2020 world where the bar for in-office work has shifted. Employers are now competing not just for talent but also for attendance. The Mart, with its transit-friendly location, sweeping river views, and curated upgrades, offers a compelling pitch.

From a market standpoint, the Berlin Packaging lease is significant. At just under 39,000 square feet, it not only marks a sizeable transaction, but also represents another corporate HQ opting to consolidate and optimize in a premium environment. With its current lease at 525 W. Monroe set to expire in August 2026, Berlin is giving itself time to make a smooth transition. This is a clear setback for that West Loop tower — already facing a vacancy rate above the downtown average.

Vornado, meanwhile, is holding steady. At 78% leased and occupied as of March, the Merchandise Mart isn’t immune to broader headwinds. But with $15.9 million in net operating income generated in Q1 alone, the asset continues to perform. And with blue-chip tenants like Berlin, Medline, and Highdive joining its roster, it’s clear the Mart is delivering on its repositioning promise.

In an office market where flight to quality remains the dominant theme, the Merchandise Mart is writing its next chapter, one lease at a time.

If you would like to learn more about how Berlin Packaging‘s move is shaping the market, contact our team of Chicago commercial real estate brokers.