Allstate To Sell Chicago Headquarters As Employees Work Remotely
Chicago Tribune (IL)
With 95% of its employees working remotely during the pandemic, insurance giant Allstate is selling its longtime Northbrook, Ill. headquarters.
Allstate told employees Friday that it is putting the sprawling north suburban campus on the market after 54 years. The company did not disclose plans for a future headquarters, or a potential asking price for its current one.
“Allstate’s employees have more choice about where they work and many are choosing to work from home,” Allstate spokeswoman Mallory Vasquez said in an email Friday. “As a result, we will sell our office in Northbrook but plan to maintain our significant presence in the Chicago area.”
Allstate has been a corporate fixture in Northbrook since 1967, when it moved its offices from Skokie to a six-building complex on a 122-acre campus. The company said Friday existing Chicago office space at River Point and the Merchandise Mart will be available to employees, but it is not clear if Northbrook will remain part of its plans.
“As we return to the office, we will determine if additional space is needed in the Northbrook area,” Vasquez said.
Allstate has 7,892 employees in Illinois and more than 44,000 across the U.S., according to its website.
The potential sale of Allstate’s headquarters comes as more major employers push back a return to the office until 2022 amid the ongoing pandemic, with many adopting a hybrid approach that will include work-from-home as a long-term option. In its 2020 annual report, Allstate said 95% of its employees were working remotely “while maintaining internal controls and productivity” throughout the year.
Allstate generated a net income of $5.5 billion in 2020, up 17% over the previous year.
Beyond real estate, the company is also shedding its life insurance and annuity businesses as it focuses on auto and homeowners insurance products. Life insurance sales have been declining at Allstate since 2018 and annuity sales were discontinued in 2014.
Last week, Allstate announced it closed the sale of Allstate Life Insurance Company of New York to Wilton Re for about $400 million. In January, Allstate agreed to sell its broader Allstate Life Insurance Co. to Blackstone for $2.8 billion, which is expected to close this year, pending regulatory approval.
In June, Allstate agreed to buy low-cost auto insurance provider SafeAuto for $300 million, expanding its state-minimum auto coverage offerings.
Founded in 1931 as part of Sears, Allstate remains one of the nation’s largest publicly held personal insurers.