CHICAGO—In the initial phase of the economic recovery, investors began snapping up much of the available class A industrial product. But as the economy has strengthened even further in 2012 and 2013, investors have starting looking, and buying, the smaller and older class B buildings, many in the suburbs, which form the backbone of the Chicago area's industry.

“Two years ago, they weren't even thinking about the B market,” says John Coleman, executive managing principal of Newmark Knight Frank Epic in suburban Rosemont. But several years of growth and strong balance sheets for companies using this building class soothed whatever anxieties investors harbored. Starting around the third quarter of last year, investors “became much more comfortable with the returns and the risk underwriting.”

“And in the first and second quarter [of 2013] we certainly saw an increase in measurable activity.” Since January 1, Coleman's firm has helped complete 21 deals, both leases and sales, in the Chicago area among industrial buildings with between 30,000-square-feet and 90,000-square-feet. “That's something that is pretty positive.” Second quarter transactions handled by NKFE include KTR Property Trust's purchase of a 74,410-square-foot building at 280-290 Gerzevske Lane in suburban Carol Stream, and the purchase of an 81,048-square-foot building at 490 Bonnie in Elk Grove Village by SFP Group, LP.

Recommended For You

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
NOT FOR REPRINT

© 2025 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.