CHICAGO—As the industrial market in the Chicago area begins to pick up speed, some companies have begun to secure lease extensions before vacancy rates fall and rents begin rising again. Exel, for example, an Ohio-based third-party logistics provider, just signed a 359,000-square-foot-lease renewal and expansion at 875 Crossroads in southwest suburban Romeoville. Last month, the firm also opted to lock in a three-year extension for 420,500-square-feet in the Laraway Distribution Center at 1151 East Laraway Road in Joliet. Jeanne Rogers of Arthur J. Rogers & Co., a partner in The CORE Network, represented Exel in both negotiations.

Exel provides logistics and supply chain management to automotive, chemical, retail, life sciences and technology companies. At 875 Crossroads, the firm has agreed to renew 269,000-square-feet and lease another 90,000-square-feet to accommodate an expansion. Ownership was self-represented by Susan Bergdoll from Duke Realty.

The deals are just the latest in a flurry of new leases and renewals in the immediate area. According to Colliers' report on the first quarter, “the I-80/Joliet Corridor started the year with 770,000-square-feet of lease transaction volume, nearly five times as much as the fourth quarter of 2012.” The Joliet submarket did have a 12.04 percent first quarter vacancy rate, Colliers found, but that “is a 154-basis-point improvement from the vacancy rate of 13.58 percent reported one year ago.” The increased demand has finally caused developers to restart building in the submarket and may give tenants more options over the next year. In the first quarter, for example, a 1.1-million-square-foot speculative warehouse and distribution facility at 3851 Youngs Road in Clarius Park, Joliet, was completed.