In the fourth quarter of 2011 the I-55 corridor submarket vacancy rate has continued to drop quickly with another 1.1 decrease in the 9.6% vacancy rate in the third quarter. This has been an impressive drop in the rate from a year ago when the 2010 fourth quarter vacancy rate was at 11.9%. In recent months, landlords have been standing firm on asking rents and some have been pulling back on tenant allowances. Lease terms have averaged between 3 and 5 years for renewals.
Given the falling vacancy rates we are starting to see the market react. Union Pointe a new 80 acre business park by McShane in Woodridge, IL is underway with the construction of their first building, which will be a 362,500sf headquarters and distribution center for Edward Don.
Along with my partner Brian Carroll we are marketing the new business park
We have seen strong interest in the park particularly for users in 100,000 square foot to 600,000 square foot range. McShane is offering build to suits for lease or sale at this new park located at the Crossroads of I-355 and I-55.
In addition to Union Pointe Business Park construction of two 500,000sf speculative buildings could begin this spring in the I-55 corridor submarket. This would be the first speculative facilities of this size in the I-55 market as well as the Chicago industrial real estate market in years.