The Cushman & Wakefield Inc. Chicago Industrial Real Estate Services team recently reported nearly 1.8 million square feet of new leases, renewals, tenant move-ins and user purchases over the past three months. And according to Britt Casey, executive director, the recent activity – highlighted by seven big-box transactions – reflects strong, market-wide momentum.
“Chicago remains one of the hottest industrial leasing markets in the nation,” Casey said. “It registered 14.9 million square feet of absorption last year, outpacing all 73 other markets tracked by Cushman & Wakefield and its Alliance Partners. The vacancy rate has dropped 1.1 percentage points, and rents have climbed 3.0 percent over the past year. These tightening fundamentals bode well for landlords looking forward through 2013 and beyond.”
The Casey team, which is based in Cushman & Wakefield’s Rosemont office, also includes Michael Hawryluk, associate director; Al Caruana, director; Christopher Lydon, SIOR, senior director; and Linda Biedron, client coordinator.
Two deals showcase the group’s recent activity. The largest involved a 367,999-square-foot, long-term lease for Waters of America, which manufactures and fills water bottles. The company will open a new facility at Prologis’ 10220 Werch Drive in Woodridge. Additionally, the team brokered a 347,440-square-foot renewal by Lagasse Brothers, at 230 E. Lies Road in Carol Stream.
Other recent transactions completed by the Casey Team include:
- A 295,393-square-foot, long-term lease on behalf of tenant Veterans Distribution of Chicago, a logistics firm, at 5999 Butterfield in Hillside (co-brokered with Summit Commercial Realty Inc.).
- A 245,217-square-foot, lease with Creative Werks, a specialty packaging company, for landlord Prologis at 1460-1470 Brummel in Elk Grove Village.
- A 203,064-square-foot, long-term lease on behalf of landlord TA Associates in Itasca; precision plastic products manufacturer Nypro recently moved into the facility at 801 W. Bryn Mawr.
- A 139,444-square-foot, long-term renewal and expansion involving transportation company Defined Logistics at 892 Carol Court in Carol Stream, representing landlord AEW.
- A 101,000-square-foot, multi-year renewal on behalf of tenant Classic Midwest, a party rental company, at 9480 W. 55th St. in McCook.
“These major transactions illustrate the high level of quality distribution and manufacturing big-box demand we are seeing in the Chicago industrial market,” Casey said. “Last year, 28 leases in excess of 200,000 square feet closed here, and so far in 2013 that momentum is continuing and in my opinion will eclipse 2012 levels.”
