(To read more on the net lease market, click here.)
ROMEOVILLE, IL-Niles-based Dann Dee Display, a division of Leggett & Platt of Missouri, recently signed a 340,505-sf lease in Panattoni Development Co.'s Windham Lakes Business Park along the I-55 corridor. The relocation will consolidate three of the company's current facilities, of which two are located in Niles and one in Morton Grove.
Christopher T. Volkert, senior vice president with Colliers Bennett & Kahnweiler, represented Dann Dee Display Fixtures Co. He tells GlobeSt.com the facility along the I-55 corridor was the ultimate compromise for the fixture company's distribution needs and employee retention.
"We looked primarily in the O'Hare market, and the only other place that made sense was Romeoville or Bolingbrook," he says. "We couldn't find the product we needed anywhere else; all we found was dated product near O'Hare. When you go to Romeoville and Bolingbrook and look at the modern facilities, and then you see what else is out there, you can justify the drive pretty easily."
The building, located at 1401 Normantown Rd., was constructed in 2005 and features 30-foot clear ceiling height, 60 exterior docks and four drive-in doors. Volkert says the rental rates were also a deciding factor, competitive thanks to cap-rate compression and continued lower land prices along I-55. Tasked with backfilling the company's 150,000-sf headquarters in Niles, he admits there are few large users of late making lease rates ever more competitive.
"There's enough inventory out there that you have to price it attractively to be the first look," he tells GlobeSt.com. "For example, there were 10 options that worked for us on this deal, and five were no-brainers. But Panattoni made it easy and attractive, and that's what you have to do because the market is so competitive." Panattoni Development Co.'s John Pagliari handled lease negotiations on the company's behalf.
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