KENOSHA, WI-Integrated Merchandising Systems, a subsidiary of New York City-based Omnicom Group, has leased about half of a vacant 626,500-square-foot distribution facility here in the Park of Kenosha. The tenant signed a 5.5-year lease with owner LaSalle Investment Management.
Whit Heitman, a principal with Paine/Wetzel-TCN Worldwide, tells GlobeSt.com that IMS is consolidating into the 312,500-square-foot lease, and has an option to take up the rest of the building. “With the IMS main facility in Morton Grove, IL to the south, the company occupies five different facilities in southeast Wisconsin, where they have a good labor pool,” Heitman says. “This consolidates a few of the five buildings into a newer building, going from 22-foot height to 32-foot height.”
The industrial market is pretty tight for large space, Heitman says. This was the only building available with 300,000 square feet or more available, and there’s only one other warehouse with more than 250,000 square feet in the southeastern Wisconsin submarket, he says.
“There’s still a couple of other big deals out there circling for space, including one foods company looking for one million square feet,” Heitman says. “In the years before the downturn there were 10 to 12 600,000-square-foot deals being done in the market, but that has fallen off. As this building here sat vacant, nobody wanted to build, but now that it’s off the market, developers are looking and talking about spec building again.”
Heitman, Samuel Badger and Brad Weiner with Paine/Wetzel represented the tenant in the lease. Ryan Bain with CBRE represented the owner.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
