Small to mid-sized industrial space remains in short supply in the Chicago market, but some businesses are finding properties to purchase for expansion. Brown Commercial Group negotiated two investment deals through its business network, completing 20,000 square feet of transactions for two growing companies.
Brown Commercial Group Broker Pat Crowley identified an off-market property at 1012-1030 Morse Ave. in Schaumburg and represented the buyer and seller, both private investors, in the 12,000-square-foot transaction. The property was purchased as a value-add transaction that will allow the buyer to increase the property’s value over time by making renovations.
Additionally, Crowley worked with Aqualab Water Treatment, Inc. in buying an 8,000-square-foot industrial building at 2200 Foster Ave. in Wheeling, IL. He also represented the seller, a private family investment partnership.
“Industrial businesses are facing many challenges finding space under 50,000 square feet in today’s market,” said Crowley. “Working through our network of suburban business owners, I was able to secure these spaces that will allow the new owners to expand in the market.”
These transactions illustrate an ongoing concern among many small to mid-sized businesses. How can they find industrial space for expansion? The shortage of space under 50,000 square feet is due in part to a run-on space in recent years. Developers and investors have been buying older industrial buildings or assembling several lots and building larger, modern facility. Tenants are then displaced during the construction process and sometimes forced to move to outlying areas, said Crowley.
The lack of smaller space throughout the Chicago market is particularly problematic for manufacturing businesses or companies that have specialized equipment and space needs. “Businesses that have invested considerable capital into specialized equipment and are reliant on being close to their labor pool and customer base are finding it more challenging in this environment,” said Crowley. “It’s not as easy to pick up and move when you have significant inventory and equipment that was specially designed for your business and your existing space.
