The insurer announced that it had reached an agreement to sell the main portion of its campus in Illinois.
The Allstate Corporation insurance company has announced that it has reached an agreement for the sale of the property comprising most of its Northbrook, Illinois campus.
The insurer announced in October that a shift in its working trends led to its decision to sell.
Near the end of October 2021, Allstate announced that it was selling its insurance company headquarters property in Northbrook, Illinois. Now, the insurer has announced that it has sold the property comprising most of its campus there to Dermody Properties.
According to the news release on the official Allstate website, the sale of the property to Dermody Properties was for about $232 million. The property’s sale is expected to close in 2022.
In October, Allstate announced that it was putting the property up for sale because all the space was becoming unnecessary. The pandemic led to a shift in the location of employee workspaces. A substantial number of workers were kept working but were doing so from their homes in order to help reduce the risk of COVID-19 spread. That said, since workers were permitted to return to the office, many chose to continue working from home instead.
The insurance company headquarters proved to be too large for what the insurer needed anymore.
Allstate decided to sell the property when it found out how many of its employees were choosing to work from home permanently. The insurer still intends to hold onto a considerable presence in the Chicago, Illinois region, said the company’s new release. This included the existing office space it holds in downtown Chicago.
The sale of the extra property in Northbrook will help the company to reduce the expenses it maintains relating to real estate. It will also help to progress the insurer’s multi-year Transformative Growth initiative for boosting its personal property-liability market share through the creation of a low-cost insurer that has established widespread distribution.
Allstate has used the Northbrook site as its insurance company headquarters since 1967. The full campus provides about 2 million square feet of office space.