CHICAGO—The vacancy rate for industrial properties around O'Hare Airport has sunk to a historic low, and the demand for space seems as intense as ever. In fact, vacant spaces are getting filled as fast as they appear.
Hackman Capital Partners, LLC, a privately-held firm in Los Angeles, landed a new tenant for its 252,200-square foot building, located at 1010-1050 Sesame St. in suburban Bensenville, just as another was leaving. Coregistics has leased 145,594 square feet, keeping the building fully occupied without any break in tenancy.
The current tenant will vacate the space on December 31, and Coregistics, a packaging and supply-chain services company, will move in on January 1.
“The timing was virtually simultaneous,” Ben Struewing, Hackman's vice president of leasing, acquisitions and sales, tells GlobeSt.com, and that's “a tribute to the strength of the O'Hare submarket. Large blocks of space are hard to find there.”
“Coregistics was searching for additional space to secure pending business from a major client,” he adds. “Our former tenant was looking to relocate and needed a flexible exit strategy. The solution was a win-win.”
Struewing praised the speed and agility of the broker teams which put the deal together. CBRE's Pete Roberson and Kevin Segerson represented Hackman in the transaction, and HFF's Robin Stolberg and JLL's Chris Tomasulo represented Coregistics.
“Coregistics has an existing facility right next door, so the location of this building was perfect for the company,” says Roberson. “We brought the opportunity to Hackman Capital. They were flexible, innovative and quick to act.”
Long-term tenant MayRich Co. will continue to lease the remainder of the building.
Deals like this are happening all over the O'Hare submarket. After peaking at 13.17% in the second quarter of 2011, its vacancy rate has dropped 910 bps, including a 40 bps drop in the third quarter, and now stands at just 4.07%, according to Colliers International. “This represents the lowest vacancy rate recorded in the O'Hare submarket since 2000, and is the second lowest rate among the 22 submarkets in Chicago's industrial market,” the firm says in a recent report.
The Sesame Street property was constructed in 1976, and is one of eight, totaling more than 1.1 million square feet, owned by Hackman in high-demand, infill locations in the Chicago metro area. According to Struewing, Hackman wants to further expand its Chicago foothold and will focus on industrial and flex properties. The company entered the Chicago market in December 2015.
CHICAGO—The vacancy rate for industrial properties around O'Hare Airport has sunk to a historic low, and the demand for space seems as intense as ever. In fact, vacant spaces are getting filled as fast as they appear.
Hackman Capital Partners, LLC, a privately-held firm in Los Angeles, landed a new tenant for its 252,200-square foot building, located at 1010-1050 Sesame St. in suburban Bensenville, just as another was leaving. Coregistics has leased 145,594 square feet, keeping the building fully occupied without any break in tenancy.
The current tenant will vacate the space on December 31, and Coregistics, a packaging and supply-chain services company, will move in on January 1.
“The timing was virtually simultaneous,” Ben Struewing, Hackman's vice president of leasing, acquisitions and sales, tells GlobeSt.com, and that's “a tribute to the strength of the O'Hare submarket. Large blocks of space are hard to find there.”
“Coregistics was searching for additional space to secure pending business from a major client,” he adds. “Our former tenant was looking to relocate and needed a flexible exit strategy. The solution was a win-win.”
Struewing praised the speed and agility of the broker teams which put the deal together. CBRE's Pete Roberson and Kevin Segerson represented Hackman in the transaction, and HFF's Robin Stolberg and JLL's Chris Tomasulo represented Coregistics.
“Coregistics has an existing facility right next door, so the location of this building was perfect for the company,” says Roberson. “We brought the opportunity to Hackman Capital. They were flexible, innovative and quick to act.”
Long-term tenant MayRich Co. will continue to lease the remainder of the building.
Deals like this are happening all over the O'Hare submarket. After peaking at 13.17% in the second quarter of 2011, its vacancy rate has dropped 910 bps, including a 40 bps drop in the third quarter, and now stands at just 4.07%, according to Colliers International. “This represents the lowest vacancy rate recorded in the O'Hare submarket since 2000, and is the second lowest rate among the 22 submarkets in Chicago's industrial market,” the firm says in a recent report.
The Sesame Street property was constructed in 1976, and is one of eight, totaling more than 1.1 million square feet, owned by Hackman in high-demand, infill locations in the Chicago metro area. According to Struewing, Hackman wants to further expand its Chicago foothold and will focus on industrial and flex properties. The company entered the Chicago market in December 2015.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
