CHICAGO, IL- Mark Nelson of NelsonHill told GlobeSt.com that the Kinzie Industrial Corridor, where his firm just completed the sale of 1735 W. Carroll St., should see an upsurge in conversions over the next few years. For decades, the neighborhood has hosted factories and industrial warehouses like 1735 W. Carroll, but Nelson said offices and service-oriented firms will soon take their place.
“There's quite a lot of exciting action,” he said, especially the conversion of the Fulton Market Cold Storage into modern office space. The venerable refrigeration company vacated the huge structure last year and headed to the suburbs. Chicago-based Sterling Bay has begun converting the antiquated structure and looking for possible tenants.
“That gets a lot of eyes on the area,” Nelson added. “Now [Kinzie is] being looked at as an office corridor,” and this has many owners of industrial property looking for an “exit strategy.”
1735 W. Carroll is a good example. Although it has a steady industrial tenant with a lease that runs for a few more years, Nelson expects the new owner will eventually convert the old building so more service-oriented businesses such as a caterers or plumbers could rent it.
Nelson cautions that these changes won't happen to the Kinzie Corridor overnight, but more than a few potential buyers have been sniffing around and making plans. “I think velocity is up, not dramatically, but I think there's movement. And I think we'll see a strong velocity in 2013.”
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.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
