In yet another sign of a broader recovery in the Chicago industrial market, Duke Realty Corp. has managed to bring its entire 10.9 million-square-foot Chicago industrial portfolio to 100 percent occupancy.
Hub One Logistics signed a renewal deal for 124,800 square feet at Duke’s Crossroads II facility, a 460,800-square-foot building at 1255 Schmidt Road in Romeoville. Metro Air Service also signed an 88,060-square-foot lease deal at the O’Hare Distribution Center at 11501 W. Irving Park Road in Franklin Park.
Steve Schnur, senior vice president of Duke Realty’s Chicago operations, attributed the portfolio’s success to having modern Class A product in desirable locations.
“We’ve had very good activity. Our pipeline for prospects is as good as it’s been in a number of years,” Schnur said. “I think the Chicago industrial market is resilient. The overall economy has been on the mend for quite some time and we haven’t added any new supply to this market to speak of.”
Duke Realty also plans to expand the 177,720-square-foot Northlake III building in Northlake by 51,884 square feet to accommodate the expansion of current tenant Grand Warehouse and Distribution Corp.
Though Duke Realty’s existing portfolio lacks available space, the company does have land available for development and the capability to deliver built-to-suit facilities in a short period of time.
“We continue to see good build-to-suit prospects in the market,” Schnur said. “We’re also seeing some spec development. We have decided not to do any spec yet, although we’re strongly considering doing it starting in the spring down in (the I-55 Corridor).”
Brian Carroll with Newmark Grubb Knight Frank represented Metro Air Services and David Bercu, Jonathan Kohn and Tom Rodeno with Colliers International represented Duke Realty. Kris Bjorson with Jones Lang LaSalle represented Hub One Logistics in its lease and Jason West and Sean Henrick with Cushman & Wakefield of IL represented Duke Realty. Susan Bergdoll, vice president, leasing, also represented Duke Realty in the three transactions.