Cushman & Wakefield Chicago Industrial Brokers Larry Goldwasser and Colin Green have completed two sizable industrial sale transactions in Chicago, totaling over 220,000 Sq. Ft. The timeliness and location of both property transactions suggests a greater trend occurring in the Chicago market.
“Coming out of the economic downturn, buyer demand for industrial product was low,” said C&W Associate Director, Colin Green. “2014 was a turnaround year and so far into 2015 we’re seeing an aggressive increase in demand, so properties are trading more quickly.”
The two properties, 1001 E. 99th St. and 5801 W. Dickens, have different stories but share similar transaction timelines. The C&W team represented Balton Corporation in the purchase of 1001 E. 99th St, a 102,000 Sq. Ft. industrial property owned by Structured Development that was standing vacant for four years. Goldwasser and Green also represented the seller of 5801 W. Dickens, a 127,000 Sq. Ft. industrial property on the Northwest side of Chicago. The property on Dickens sat vacant for several years before the C&W team secured a contract to sell the property within twelve months of listing it. Steve Kohn, of Colliers International, represented the buyer in the transaction.
“The search for high quality industrial space is competitive because vacancy rates are the lowest they have been since 2009,” commented Green. “Users are hungry to purchase available product because there are steady returns to be made, and owner/users are doing the same.”
C&W market research reports confirm the trend, indicating user and investor sales have been on the rise with no signs of declining. Investor sales have risen dramatically since 2012, a 36% increase in square feet sold from 2012 to 2014 (29 MSF in 2014). Simultaneously, user sales are steadily on the rise with annual sales measuring 14.2 MSF in 2014, a 137% increase from 2009. “The timing of these transactions couldn’t be better. Most of the larger available spaces in the city have been or are in the process of being absorbed, making way for some of our new industrial developments that are coming out of the ground”, added Goldwasser. “It’s an exciting time”.