Avison Young has secured the exclusive sale listing for a 149,474-square-foot industrial facility at 6035 Gross Point Road in Niles, Illinois, in the North Cook submarket.
Avison Young principals Erik Foster and Mike Wilson, who are both based in the firm’s Chicago office and members of the company’s national industrial capital markets group, are representing owners Dermody Properties and Wanxiang America Real Estate in the sale.
The facility is fully leased to Fort Dearborn Company, one of the country’s largest producers of labels for consumer goods packaging. The company—a long-time tenant in the building—serves markets such as food and beverage, household and personal care products, including many leading consumer brands.
“This asset has a long-term tenant in place and is located in one of the strongest submarkets in Chicago, making this an attractive investment opportunity,” said Foster. “Chicago’s industrial market continues to outperform many other markets nationally and is a draw for national and international investors looking for stability and long-term growth.”
According to Avison Young research, the North Cook industrial submarket has 42.4 million square feet of industrial inventory and remains one of the most active within the Chicago market. At Q3 2020, the vacancy rate was 4.4 percent and net absorption was 214,578 square feet. Leasing activity was 331,155 square feet in the quarter, with an average asking rent of $6.06 per square foot.
Development and leasing activity continued at a strong pace throughout the Chicago industrial sector in Q3 2020, as e-commerce and logistics companies tried to keep pace with demand for consumer, grocery and medical supply products during the pandemic.
According to Real Capital Analytics, there were $596.7 million of industrial sales in the overall Chicago market during the third quarter of 2020, with 79 properties sold for an average asking price of $75 per square foot. Sales totals for the past four quarters show a stable level of activity–$5 billion across 442 properties, with an average of $72 per square foot.
Buyers in the Chicago market during 2020 have been split between private investors (36.1 percent), listed investors/REITS (36.4 percent), and institutional investors (24 percent). Among the top buyers in the market were Prologis, BREIT, Blackstone and KKR.