Avison Young has been awarded the exclusive sale listing for a 93,050-square foot, two-building portfolio in Chicago’s northern suburban market.
Avison Young principals, Erik Foster and Mike Wilson, both based in the company’s Chicago office and members of the firm’s national industrial capital markets group, are managing the marketing of the portfolio. The team is working in conjunction with Avison Young principal, John Hauser, also based in Chicago. The properties are currently 100 percent occupied by multiple tenants, including business furniture distributor Direct Commerce, point-of-sale data equipment provider Datamax and industrial machinery producer Bioenergy Technology, Inc.
The Sky Harbor Industrial Park portfolio includes a 66,912-square-foot building at 720-730 Landwehr Drive in Northbrook, Illinois and a 26,147-square-foot building at 305-311 Era Drive, also in Northbrook. Both buildings are fully leased to tenants who have specific building needs, including location, size and office build-out.
“Chicago’s industrial market continues to attract investors looking for strong, long-term investments,” said Foster. “Portfolios that are well leased to tenants with growing businesses are particularly well received in today’s market.”
Many of the tenants in the portfolio have long-term plans to remain in their spaces, which provide access to strong suburban and urban labor pools. The vacancy rate in the north Cook County submarket has consistently declined since 2014, to a current rate of 4.9 percent. Average net asking rents in that submarket are $7.87, according to Avison Young research.
Construction activity remains limited in that submarket, with only one building currently under construction totaling 150,000 square feet. 25 East Piper Lane in Prospect Heights, Illinois is expected to deliver to the market during the fourth quarter of 2019 on a speculative basis.