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User Fills 170,000 SF at Infill Site

NILES, IL-The newly constructed Niles Industrial Center is now 50% occupied. Expecting smaller tenants, developers are surprised when Fibre-Craft leases nearly 170,000 sf.

By Dana Dubriwny | Updated on May 22, 2006

NILES, IL-After completing its 400,000-sf industrial/distribution redevelopment project at 6420 W. Howard, developers Principal Financial and the Missner Group have leased 50% of the project. Known as the Niles Industrial Center, the distribution property consists of two 200,000-sf spec facilities with units expected to range from 20,000 sf to 100,000 sf.

However, the most recently inked lease, signed by Fibre-Craft Materials Corp. for 169,800 sf, was far more substantial in size than the partnership was anticipating. “There has been a great deal of interest in the project because of the intrigue of a new property, but it has been somewhat slow on leasing front,” Barry Missner, principal of the Missner Group, tells GlobeSt.com. “But because of the size of the lease, the project is already half full. We were expecting by smaller tenant, and we were surprised when we got a bigger user.”

The reason, he found, was that the Niles industrial market lacks comparable inventory. “You don’t have to lease the as much space for the same warehousing facility,” he says, “and we believe we can sell that and some image. This building has image.” For the building’s efficiency and image, users will dish out a 30% premium in rent—a small price to pay for replacing the antiquated facility that formerly occupied the site, says Missner.

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