Grubhub to move Chicago headquarters to Merchandise Mart

Grubhub, the online food ordering and delivery company, is finalizing a deal to move its headquarters to Chicago’s Merchandise Mart and shrink its downtown office footprint by about 45%, according to a report by Crain's Chicago Business.

Grubhub is reportedly close to a deal to sublease approximately 90,000 square feet from mobile payment giant PayPal in the historic building along the Chicago River. Grubhub would relocate its main office from the Burnham Center in the Loop, where it leases around 164,000 square feet.

The decision to reduce office space and relocate comes as Grubhub aims to rein in costs and regain market share from competitors like DoorDash and Uber Eats. Last year, the company laid off 400 workers, representing about 15% of its workforce, to "better position the company for long-term success."

This move would be a blow to the Loop, which has seen big corporate tenants like Bank of America, BMO Harris, and others move out for newer office spaces elsewhere downtown. Grubhub will remain in the Loop until 2028 when the company’s lease at the Burnham Center expires.