MILWAUKEE, Wis. — Northwestern Mutual will be moving nearly 2,000 employees out of its Franklin campus and into its downtown Milwaukee facility.
To accommodate the additional employees, the company is asking for the city's support for a $500 million renovation to one of the company's downtown buildings.
Watch: Northwestern Mutual CEO John E. Schlifske describes the move during an announcement on Thursday
Northwestern Mutual's president and chief executive officer John Schlifske said it is an effort to encourage collaboration and in-office attendance.
Prior to the pandemic, about 85% of employees worked in person. That number has since dropped to 70%.
Under the new plan, Northwestern Mutual would leave its Franklin office and two office buildings in the Milwaukee County municipality to consolidate its footprint across the region. The Franklin property would eventually be either sold or leased to a new company.
The $500 million renovation of the north building would mirror the glassy Northwestern Mutual building.
"We're going to create new gathering spaces, enhanced amenities, and areas for the public to engage with us and our building," Schlifske said.
The project would overhaul the existing north office high-rise, which was completed in 1990. It would be stripped down to its structure and rebuilt with an additional floor. The company also wants to close a section of Cass Street so it can build a pedestrian plaza.
Once completed, Northwestern Mutual would be able to accommodate 9,000 employees. If the proposal is approved, the renovation could begin as soon as this fall.
Mayor Cavalier Johnson said this investment will lead to more people calling downtown home.
"I've not been shy about me and my long-term goal of increasing the city of Milwaukee's population towards 1 million people," Johnson said. "I believe it's Northwestern Mutual that will help make this a reality."
But with the move, comes a vacancy in Franklin where those 2,000 employees currently work. One of them spoke to us off-camera about his concerns.
"If I move to downtown, obviously the traffic and parking," he said.
Franklin Mayor Steve Olson said he's heard from people who are not happy and is worried about what comes next.
"It's frankly not good for a community to hear that business is leaving," Olson said.
He said the city will work with Northwestern Mutual to find a new solution.
"It now becomes part of our investment real estate and we're going to work with them (Franklin) to develop that," Schlifske stated.
Olson said the end goal is finding a bigger and better tenant. He also added that conversations have already started with potential prospects to take over that land.
Pending final approval from the city, construction can begin as early as this Fall, and potential occupancy by 2027.
