Bridge then signed NNR Global Logistics USA, Inc. to a long-term lease for 119,752 square feet at 1701 Nicholas, or about 80% that facility. This was a significant expansion and relocation of NNR's Chicago operations from their former home at 765 Dillon Dr. in Wood Dale.

Finally, last month, NNR agreed to lease the remaining 30,768 square feet unit at 1701 Nicholas, consolidating operations from several facilities and bringing that property to 100% occupancy.

Both facilities offer state-of-the-art features such as 32' clear ceilings, ESFR sprinklers, exterior loading docks and 126-foot truck-court depths that are still rare around the airport, which still has a large number of legacy buildings from the 1960s.

“At any given time, there are just as many and perhaps more active prospects looking at spaces near O'Hare than in any other submarket,” Groetsema says. “The submarket has the most activity than anywhere else except maybe I-55.”

According to a Colliers International report on the second quarter, the O'Hare vacancy rate has fallen for eleven consecutive quarters. It now measures just 5.45%, down 52 bps from the first quarter rate of 5.97%. “Vacancy in this market has declined 219 bps over the past year,” the firm notes.

Groetsema says there are forces at work which should ensure a steady amount of demand for new product. More companies, for example, are deciding to abandon older buildings for modern facilities with ESFR sprinklers and at least 28' ceilings. “There is a pretty significant flight to quality,” and even though this pressure has been around for several years now, “we're seeing it more and more.”

And the same pressures that are driving suburban office users into the city are also at work in the industrial market. Many big firms occupying spaces in Bolingbrook and other towns on the suburban periphery employ young designers who would strongly prefer to live in the city. In response some companies are looking at spaces closer to the city, and that benefits the O'Hare submarket and those inside I-294.

As reported in GlobeSt.com, Bridge has had success with spec developments in McCook, a suburb much closer to the city. “That is not to say that I-55 is going away,” Groetsema says, “far from it. But we are seeing the quality of life for employees growing in importance for many companies.”

Finally, the strengthening economy has made many users more likely to entertain plans for either expansion or consolidation into new facilities. “They are getting more comfortable making transformative moves.”