Thursday, July 25, 2013
Wednesday, May 29, 2013
Trade Show Exhibit Maker to Move 300 Jobs to Woodridge
The village of Woodridge has landed another big employer, a trade show exhibit maker that plans to move 300 workers to a new building in the southwest suburb.
Orbus Exhibit & Display Group has agreed to lease a 347,400-square-foot building in the Union Pointe business park, following restaurant equipment distributor Edward Don & Co., which moved there last year. Orbus plans to leave its current facilities in Bolingbrook and Niles, said CEO Giles Douglas, who planned to tell employees about the move today....Read full article on ChicagoRealEstateDaily.com
Thursday, April 11, 2013
Saturday, October 27, 2012
Chicago Industrial Real Estate Market Update 2012
In response to the weakened economy over the last several years, speculative construction in the I-55 corridor had dropped dramatically, and for the last four quarters there were no new construction deliveries.
However, in recent months that has all changed. DCT has announced a 604,000 square foot speculative distribution center located near the I-55 and Weber Road Interchange. In addition, ML Partners recently announced a 121,800 square foot speculative distribution center at I-355 and 143rd Street in Lockport, IL, which will be divisible to 17,400 square feet. In Park 355, a development by H.S.A., construction will commence this fall on Phase II, a 180,000 square foot distribution center divisible to 17,500 square feet.
Clarius Partners has started construction on a 1 million square foot facility on Youngs Road in Joliet. In addition, Clarius Partners is doing site work for a 454,000 square foot facility in Morris, IL. Both of these projects will serve large users that range from 200,000 s.f. and up. In total there is approximately 2.3 million square feet of new speculative construction that has commenced, or will be starting construction this year. All of these projects address an area of the market that is underserved, a lack of Class A space serving users over 500,000 square feet, and under 50,000 square feet.
Upon completing an in-depth analysis of the I-55 corridor sub market, which includes facilities in Bolingbrook, Romeoville, Woodridge and Lemont, IL, I have the following to report.
Focusing solely on Class A & B industrial product, there is approximately 60 million square feet with a vacancy rate of 13.4%. The interesting thing about this market is that over half is owned by investors that own more than one facility, and some of these investors own ten or more facilities within the I-55 corridor. The average size of a building in the Chicago industrial real estate market is 233,000 square feet, which is one of the reasons that the I-55 corridor is the most attractive sub market for firms pursuing state-of-the-art distribution centers.
Another key advantage of the I-55 corridor is its proximity to four intermodal centers; all located within minutes of I-55, thereby reducing drayage costs for companies using intermodal transportation.
I expect to see demand for space in the I-55 corridor to continue to be strong. When analyzing rollover risk for the Chicago industrial market (the number of tenants with leases expiring within a given year), we see that in 2013 there will be approximately 22 million square feet (or approximately 2% of the entire Chicago industrial market) of space that will have leases expiring. In 2014, there will be approximately 20 million square feet of space that will have leases expiring, and in 2015 there will be approximately 16 million square feet of space with leases expiring. Some of these tenants will renew, but many firms (particularly distribution users) will be looking for better, more efficient options in the market. If the economy continues to improve, we expect these users size requirements continue to improve.
If you have any questions about the Chicago industrial real estate market, or the I-55 corridor submarket, please contact me.
Jim Cummings
www.55industrial.com
However, in recent months that has all changed. DCT has announced a 604,000 square foot speculative distribution center located near the I-55 and Weber Road Interchange. In addition, ML Partners recently announced a 121,800 square foot speculative distribution center at I-355 and 143rd Street in Lockport, IL, which will be divisible to 17,400 square feet. In Park 355, a development by H.S.A., construction will commence this fall on Phase II, a 180,000 square foot distribution center divisible to 17,500 square feet.
Clarius Partners has started construction on a 1 million square foot facility on Youngs Road in Joliet. In addition, Clarius Partners is doing site work for a 454,000 square foot facility in Morris, IL. Both of these projects will serve large users that range from 200,000 s.f. and up. In total there is approximately 2.3 million square feet of new speculative construction that has commenced, or will be starting construction this year. All of these projects address an area of the market that is underserved, a lack of Class A space serving users over 500,000 square feet, and under 50,000 square feet.
Upon completing an in-depth analysis of the I-55 corridor sub market, which includes facilities in Bolingbrook, Romeoville, Woodridge and Lemont, IL, I have the following to report.
Focusing solely on Class A & B industrial product, there is approximately 60 million square feet with a vacancy rate of 13.4%. The interesting thing about this market is that over half is owned by investors that own more than one facility, and some of these investors own ten or more facilities within the I-55 corridor. The average size of a building in the Chicago industrial real estate market is 233,000 square feet, which is one of the reasons that the I-55 corridor is the most attractive sub market for firms pursuing state-of-the-art distribution centers.
Another key advantage of the I-55 corridor is its proximity to four intermodal centers; all located within minutes of I-55, thereby reducing drayage costs for companies using intermodal transportation.
I expect to see demand for space in the I-55 corridor to continue to be strong. When analyzing rollover risk for the Chicago industrial market (the number of tenants with leases expiring within a given year), we see that in 2013 there will be approximately 22 million square feet (or approximately 2% of the entire Chicago industrial market) of space that will have leases expiring. In 2014, there will be approximately 20 million square feet of space that will have leases expiring, and in 2015 there will be approximately 16 million square feet of space with leases expiring. Some of these tenants will renew, but many firms (particularly distribution users) will be looking for better, more efficient options in the market. If the economy continues to improve, we expect these users size requirements continue to improve.
If you have any questions about the Chicago industrial real estate market, or the I-55 corridor submarket, please contact me.
Jim Cummings
www.55industrial.com
Thursday, September 20, 2012
I-55 Corridor Vacancy Rates
Vacancy rates for A class and B class buildings in the I-55 corridor sub market in Chicago where we track over 270 buildings totalling just over 60 million square feet is at 13.34% in the third quarter.
Recent activity in Chicago industrial real estate market includes three new spec buildings. DCT is has the walls going on 1160 W. Crossroads for a 600,000 square foot distribution center. ML Realty has announced that they will be putting up a 121,800sf multi tenant building at 143rd street and I-355 in Lockport at ML Realty new park, Heritage Crossings. Aryza Bakery is taking the rest Ryan Developments land in Boldt Park for a 275k sf build to suit. Right across from DCT's 600ksf spec building.
Activity has been strong on my business park, Union Pointe in Woodridge. We have seen a lot of activity for build to suits ranging from 100ksf-400ksf.
Please visit the real estate news tab for Chicago industrial real estate market information.
Recent activity in Chicago industrial real estate market includes three new spec buildings. DCT is has the walls going on 1160 W. Crossroads for a 600,000 square foot distribution center. ML Realty has announced that they will be putting up a 121,800sf multi tenant building at 143rd street and I-355 in Lockport at ML Realty new park, Heritage Crossings. Aryza Bakery is taking the rest Ryan Developments land in Boldt Park for a 275k sf build to suit. Right across from DCT's 600ksf spec building.
Activity has been strong on my business park, Union Pointe in Woodridge. We have seen a lot of activity for build to suits ranging from 100ksf-400ksf.
Please visit the real estate news tab for Chicago industrial real estate market information.
Thursday, March 1, 2012
Chicago Industrial Real Estate Vacancy Rate Continues To Drop
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
www.union-pointe.com
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.
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
www.union-pointe.com
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.
Tuesday, October 4, 2011
Saddle Creek To Lease In Elwood, IL
My partner Jack Cozzie and I recently completed a 400,000 square foot lease for Saddle Creek, a third party logistics firm in Elwood, IL where BNSF rail has their intermodal center. This location is less than a mile from the entrance to the BNSF intermodal resulting in significant savings in transportation costs for Saddle Creek. Read the full story on RE Journals.com.
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