Allstate sells site to cut cost as remote work becomes new normal

US personal lines insurer  Allstate Corporation is selling its Northbrook headquarters for $232 million, in a move to reduce real estate expenses as many of its employees are making a shift to working remotely — a trend that has been accelerated by the COVID-19 pandemic and is likely to persist well into the future.

The company announced that it has reached an agreement to sell the property making up the majority of its campus in Northbrook, Illinois, to Dermody Properties. The sale is expected to close in 2022.

“ Allstate is selling the property as employees have more choice about where they work and many are choosing to work from home,” the insurer said in a statement.

“The sale will also reduce real estate expenses and further advance Allstate’s multi-year Transformative Growth initiative to increase personal property-liability market share by building a low-cost insurer with broad distribution,” it added.

Allstate moved into the Northbrook site in 1967 and the campus currently includes 2 million square feet of office space.

The company noted that it plans to keep a significant presence in the Chicago area, including its existing office space in downtown Chicago.

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