Cushman & Wakefield‘s Industrial team recently represented O’Hare Business Park in Schiller Park, Illinois on a 55,000 square foot lease with Winebow, Inc., a major importer and distributor of wine, craft spirits and sake.
This represents the park’s tenth new lease since January of this year, bringing the total of new deals signed to 272,285 square feet.
“O’Hare Business Park has experienced steady leasing activity over the past several years, but nothing as strong as what we have seen this year,” said C&W’s Larry Goldwasser, who along with Jay Maher and Colin Green represents KTR, the owners of the O’Hare Business Park.
The ten leases signed this year have ranged in size from 5,000 square feet to upwards of 130,000 square feet. Just as the scale of leases executed have ranged, so have the types of new business who have relocated to the park including food related distribution and packaging, manufacturing, and e-commerce. New tenants include GoPicnic Brands, Marbles: The Brain Store, ARPAC Group, 1st Choice O’Hare Airport Parking, J&H Fulfillment and others.
“The small to midsize industrial tenants have clearly reentered the market this year,” commented Robert Turcott, Vice President of Asset Management for KTR. “The leasing velocity we are experiencing is directly related to the short supply of quality, yet functional options we can offer the market today at O’Hare Business Park.”
O’Hare Business Park, located at W. Irving Park Road and Mannheim Road, is comprised of 16 industrial buildings positioned immediately along the south border of O’Hare International Airport. Its close proximity to the airport and major thoroughfares appeals to those seeking ease of access to downtown Chicago. Purchased in 2007, and fully renovated in 2012 by KTR, the park features energy-efficient lighting, new offices, and updated building facades. The buildings are divisible and range in size from 5,000 square feet to 108,000 square feet.
The increased activity at O’Hare Business Park this year is on par with current trends throughout the Western Cook County submarket.
According to Cushman & Wakefield’s latest market research, the vacancy rate in this submarket at the end of Q2 this year was 8.3%–the lowest rate that the Western Cook County submarket has seen in years.
Overall absorption has also been positive in this submarket, as evidenced by user sales and leasing transactions which measured at 1.3 million square feet and approximately 657,000 square feet, respectively. Jay Maher believes the leasing activity will remain consistent for functional West Cook properties and we will continue to see increased activity from the smaller users that require between 10,000 SF to 30,000 SF.
A few spaces ranging from 8,000 SF to 29,500 SF remain available at O’Hare Business Park; but as economic conditions continue to improve, Goldwasser and his team predict the leasing momentum of this year to continue.