Brown Commercial Group negotiated a 20,000-square-foot industrial warehouse acquisition in the Chicago market for a growing manufacturing business that will be doubling its warehouse space.
Brown Commercial Vice President Mason Hezner represented AES USA Corp. in the $1.9 million acquisition of 989 Pauly Drive in Elk Grove Village, Illinois. The property attracted multiple offers.
The buyer, a distributor of flexible conduit systems for heavy industrial automotive markets, is moving from a 10,000-square-foot space that is also in Elk Grove Village, Illinois.
Rumco Acquisition Corp. was the seller of the building and was represented by CBRE.
According to CoStar research, many of the industrial building sales in the O’Hare submarket over the past 12 months were in the range of 28,000 to 85,000 square feet, as demand for small to mid-sized buildings continues to lead sales activity. The O’Hare submarket has a 4.3% vacancy rate, more than 100 basis points lower than the vacancy rate for the overall Chicago market. Asking rents in the submarket are approximately 15% higher than the Chicago average and recorded an annual growth rate of 4.5%.
The overall Chicago industrial submarket continues to show resilience and outperform many other national markets. Tenant demand remains resilient, especially for logistics space, which accounts for about 90% of the leasing activity.
