CHICAGO-It hasn't fully translated into sales just yet, but Columbus, OH-based Pizzuti Cos. vice president of sales and leasing Bill Baumgardner tells GlobeSt.com one industrial trend is clear. “The activity is very strong with the big-box users – 500,000-sf or more. The strength of that area has been very good, and the quality of the companies looking has been very good.”
While those bulk distribution possibilities are in favor, multi-tenant facilities in the 150,000-sf are not, Baumbardner adds.
Meanwhile,. Chicago-based CenterPoint Properties, a REIT that aims to be the industrial landlord of choice in the region, prefers warehouse properties because of their low capital requirements, a high-level of tenant investment, triple-net lease terms, limited competition and their greater salability over other property types.
Prime Group Realty Trust, a Chicago-based REIT with a predominantly office portfolio, still considers bulk warehouse and distribution facilities, especially if they are well-located and under-managed. However, the REIT is in negotiations to sell its entire suburban office and industrial portfolio.
Chicago-based First Industrial Realty Trust acquired a 1.25-million-sf light industrial property in Carrollton, TX for $60.8 million, one of just two acquisitions in the first quarter. Meanwhile, it sold off 21 buildings totaling 1.18 million sf for $59.9 million.
Indianapolis-based Duke-Weeks has 83.4 million sf, 76% of its portfolio, committed to industrial real estate. Most of that – 69.4 million sf – is bulk warehouses with clear ceiling heights of 20 feet or more.
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