Cushman & Wakefield’s Chicago-based Industrial and Redevelopment Services Group has closed 11 user transactions totaling 1 million square feet in the last 60 days, spurred by peaked interest in Western Cook County and Chicago.
The trend continues strong activity recorded in 2013. Industrial user sales activity for the Chicago metropolitan area totaled 12.5 million square feet in 2013, an increase of 4.8 percent from 2012, according to Cushman & Wakefield. Western Cook County recognized a year-over-year increase in user sales of nearly 75 percent.
“We’re seeing growing demand in the infill Cook County submarkets, specifically the City of Chicago and Western Cook County suburbs,” said Larry Goldwasser, senior director for C&W’s Industrial and Redevelopment Services Group. “As the occupants want to continue to utilize the qualified labor in the in-fill markets, were seeing a definite push for them to remain in the area, as opposed to moving out to the outlying suburbs.”
Significant transactions for Chicago and Western Cook County include Edsal Sandusky’s purchase of 228,000 square feet at 5600 Proviso Ave. in Berkeley, Kehoe Design’s long-term lease of 234,000 square feet in Chicago’s Pilsen Neighborhood and relocations/expansions by Diversified Industries, Door2Door Organics, GoPicnic, A&T Trucking and Modern Printing Colors Inc.
“All of the deals were a result of growth or expansion by the buyers and tenants who are either currently in this particular market, or are expanding to it, which is a very exciting indication of the strength of the market in general,” Goldwasser said. “As more new construction projects are completed and more functional properties come on line, we expect to see continued demand from these users.”
Edsal Sanduksy’s purchase of 5600 Proviso Drive, a multi-tenant industrial building, from ManuLife Financial was one of the largest user sales in West Cook County in 2013. The move highlighted another catalyst for the submarket in the Tri-State Tollway expansion.
“The tollway expansion brings several positives to the submarket by allowing more direct access to the submarket and O’Hare,” Goldwasser said. “However, there will be some companies, like Edsal Sandusky, who will need to relocate out of the expansion area.”
“The amount of recent activity in the market is creating a lack of available building supply, which is the catalyst for several planned spec developments,” said C&W senior associate Colin Green. “We’re anxious to watch the transformation to newer buildings in these markets.”
