Avison Young recently negotiated an 89,901-square-foot industrial lease at 1845 Tonne Road in Elk Grove Village, Illinois, illustrating the continued demand for well-located buildings in the O’Hare submarket. The new tenant, Cycle Logistics, a transportation and distribution company, is consolidating its warehouse and distribution space from multiple locations.
Avison Young principal Todd Heine and associate Tom Curtis, both based in the firm’s Chicago office, represented landlord Ella Holdings, LLC in the transaction. The tenant was represented by Doug Pilcher from Cushman & Wakefield.
“Landlords in the the booming O’Hare industrial market continue to benefit from its strategic location and the historically low vacancy rate,” said Heine. “This full-building lease allows the landlord to continue operating at 100 percent occupancy without any disruption to tenancy.”
The O’Hare industrial market is consistently a top performer, as distribution, warehouse and e-commerce companies look to tap into the vast network of transportation options that tie into the airport and regional distribution routes. According to Avison Young research for Q3 2018, the O’Hare submarket had net absorption of 1.2 million square feet. There were 915,590 square feet of leasing activity and 1.94 million square feet of industrial space under construction in that submarket.
The Tonne Road building includes eight interior docks, parking for 60 cars, heavy power capacity and modern warehouse space with locker rooms. It is located in proximity to I-294 and the four-way interchange at I-90 and York Road.