KENOSHA, WI—The owners of big, modern industrial spaces in southeast Wisconsin are breathing a sigh of relief. The recession left some of these buildings, built in the run-up to the economic crash, less-than-full or even empty for years. Now, however, all hum with activity, says Whit Heitman, a principal with Chicago-based Paine/Wetzel / TCN Worldwide. He recently helped complete a 314,249-square-foot lease to Integrated Merchandising Systems in an industrial building located at 10100 58th Place in Kenosha, Wisconsin, near the Illinois border. LaSalle Investment Management owns the 626,784-square-foot facility, now entirely occupied by IMS. The company leased the initial 312,500-square-feet last year and has consolidated operations from facilities throughout the market into this one, modern structure.
Samuel Badger, senior vice president; and Brad Weiner, vice president of Paine/Wetzel / TCN Worldwide, along with Andrew Beckler of Feld Real Estate, also helped represent IMS in the transaction.
“It's been vacant for quite awhile,” says Heitman. A previous owner built it on spec about five years ago, and then was unable to find tenants. Headquartered in suburban Morton Grove, Illinois, IMS provides merchandising services, including warehousing, and chose the building due its proximity to I-94 and amenities such as 32-foot clear ceiling heights. “This is a much more modern facility than they had,” Heitman adds. “They can do more in less space.”
This and other deals in the region have considerably brightened the economic outlook. “There's nothing, zero available now,” he says, speaking of modern industrial spaces with over 300,000-square-feet in southeast Wisconsin. And overall, “the vacancy rate has got to be just over four percent, so it's a really tight market.”
“There's talk of building spec [buildings] now. We're seeing a lot of companies that need space that are looking for land up there. It's the hottest market in the area.”
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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.
