Brown Commercial Group brokers 81K SF industrial leaseBrown Commercial Group
OCTOBER 29, 2021
RE Journals News — Brown Commercial Group negotiated a 81,079-square-foot industrial lease at 2 Territorial Dr. in Bolingbrook, IL in Chicago’s South I-55 Corridor. Partner Trinity Scurto represented Lithotype, a commercial printing company, in more than doubling its space with the move.
“The tenant is experiencing significant growth and was initially focused on finding temporary space to support expanding customer needs,” Scurto said. “Through a detailed evaluation of their growth plans and space needs, Brown Commercial Group determined that a larger space that could improve efficiencies was more advantageous for managing long-term growth projections.”
The space is part of a 101,844-square-foot building and was previously leased to an industrial business with significant power needs. This provided many benefits to the printing company in terms of high-power capacity and a layout that supports large equipment. Lithotype is moving from a nearby location in Bolingbrook, IL.
The landlord was represented by Cushman and Wakefield.
Chicago Industrial Overview
This industrial lease is another example of the strong tenant demand that continues to fuel activity in the Chicago industrial market. At the end of October 2021, the Chicago market recorded 28.1 million square feet (msf) of net absorption during the past 12 months and has an overall vacancy rate of 5.6%, according to CoStar research. Tenants in the manufacturing, retail and logistics industries are leading the way in space absorption, accounting for more than 75 percent of leasing and absorption in the past year.
Notable submarkets with strong net absorption over the last 12 months include: O’Hare, with 5.1 msf; Central Kane County/DuPage, with 2.4 msf; I-55 South Corridor, with 2.3 msf; Northwest Cook County, with 1.3 msf; North Kane County/I-90, with 1.2 msf; and North Lake County, with 990,434.
This industrial leasing demand has also fueled a significant construction boom, as developers work to keep pace with tenant demand. There was 21.8 msf of new space delivered in the Chicago market during the past 12 months, including 1.9 msf in the South I-55 Corridor. Among the submarkets with notable construction deliveries in the past 12 months are: Northwest Cook County, with four buildings delivered totaling 1.1 msf; O’Hare, with seven buildings delivered totaling 1 msf; and North Kane County/I-90 Corridor, with six buildings delivered totaling 440,000.
The South I-55 Corridor has had 16 msf of new industrial space delivered over the past decade. The corridor has experienced strong fundamentals driven by both the logistics and specialized industrial segments, such as food manufacturing and packaging.
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