CHICAGO—Basic Enterprises, Inc. has just signed a new lease for a 101,543-square-foot building, owned by DCT Industrial, at 2567 N. Greenleaf Avenue in suburban Elk Grove Village, nearly double the space it had occupied. The deal is just one example of the accelerating leasing activity driving absorption for industrial properties in the Chicago metro area.
“Their business was expanding and this was an opportunity to get on a high-profile corner,” said Jonathan D. Kohn, senior vice president with Colliers International | Chicago's Industrial Advisory Group, who represented Basic in the recent negotiations. Chris Nelson of Lee & Associates represented DCT Industrial.
The building sits on the corner of Elmhurst Rd. and Greenleaf Ave., and was originally constructed in 1977. DCT renovated it in spring 2013, knocking off several walls and putting on a new facade, reconstructing the office space and adding 13 exterior dock doors. The sleek, modern look makes it a neighborhood standout.
“It's not every day you can find an 18' clear building with that visibility and impact,” Kohn said. Basic is a full-service air, ocean and logistics freight company and had occupied about 70,000-square-feet in two facilities, but wanted to consolidate operations to better serve its many clients in the surrounding business parks. “They wanted to be in the heart of Elk Grove Village.”
And many of Basic's clients are also expanding and looking for new space. “Two years ago, if you needed 25,000-square-feet, you could write your own ticket,” Kohn said, “but it's tightening up. A lot of the recent absorption is the result of these smaller deals.”
“Third quarter leasing activity measured 9.8-million-square-feet, up 12.2% from the prior quarter,” according to a Colliers report on third quarter industrial activity in the Chicago area. “There was a significant increase in tenant demand in spaces between 10,000-square-feet and 25,000-square-feet, as 102 such leases were consummated in the third quarter versus only 63 in the prior quarter.”
“This was a very high-profile redevelopment project,” Kohn noted, “and one month after [DCT] finished it, they signed the lease.”
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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.
