Chicago Industrial Market: Strong Demand in I-55 CorridorBrown Commercial Group
December 2022 — The I-55 Corridor continues to draw growing businesses that are seeking access to Chicago’s industrial market and transportation routes that provide connection to surrounding Midwest and National markets. Here’s a look at a recent industrial transaction that shows the market dynamics and the importance of having a strategic real estate partner to help navigate today’s market.
Brown Commercial Group Partner Mike Antonelli recently completed an intensive site selection and market analysis for Pioneer Service, Inc. and M&M Quality Grinding in the Chicago industrial market. These efforts resulted in new industrial leases in a shared facility in the I-55 Corridor. The solution will allow both companies to operate out of a 131,605-SF facility, which is being renovated to meet their needs.
As noted in Connect Media, “After an extensive evaluation of industrial space in the Chicago market, we identified a facility that will help the companies improve efficiencies, increase their manufacturing capabilities and remain in proximity to their employees and customers,” said Antonelli. “Despite a shortage of industrial space in the market, we were able to secure a well-located facility that is being retrofitted to fit the companies’ long-term needs.”
Pioneer Service signed a long-term lease to occupy 61,000 square feet, and M&M Quality Grinding Inc. will occupy 70,000 square feet. Pioneer, which manufactures precision machining parts for the aerospace, hydraulics and medical industries, is currently based in Addison. M&M, which manufactures ground metal bar stock and provides bar processing services for aerospace, medical, military and industrial businesses, is in Chicago.
Renovations will begin this month. The building is being retrofitted to fit the companies’ long-term needs, according to Antonelli.
Additional Chicago Industrial Market highlights:
Strong demand along I-55 Corridor — Antonelli told the Chicago Business Journal about the significant demand for industrial space along the I-55 Corridor near Midway International Airport. “The I-55 corridor is seeing record demand, and while developers are working to add new product, it is currently a challenging environment for tenants looking for space. Despite economic headwinds from rising interest rates and other factors, tenants are still expanding and in need of modern space,” he said.
Employers are Focusing on Employee Retain and Transportation — “Businesses are also looking closely at their employee base and trying to find space that allows them to retain employees and support their transportation needs,” said Antonelli. “While there is notable activity in the logistics sector, there is also demand from manufacturing companies that want to find more efficient space to support their growth.”
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