"When it comes to dot-coms, I have to tip my hat to the banking industry," Orrico says, crediting them for not aggressively lending money to start-ups. "Silicon Valley didn't have a proliferation of start-up companies . . . We are seeing an increase in sublease activity in Silicon Valley, but then, you're talking about a market that has a 4% vacancy rate. If it increases to a 5% or 6% vacancy factor, it still isn't much."
Not only does the local market have a couple notable dot-com busts, but communications equipment giant Motorola is based in northwest suburban Schaumburg, with other operations throughout the area. "There's a fairly good amount of activity Downtown as companies look for space," Orrico says.
However, First Industrial Realty Trust has Amazon.com on the hook for space it rents in Atlanta. "They're current with their rent, the property is located in a high-demand area and the space is adaptable," notes David Draft, executive vice president of development operations. "We see this as an opportunity to work with Amazon to find a replacement tenant or tenants."
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