CHICAGO—With a few exceptions, the suburban office submarkets have struggled for years to fill vacancies. The North Suburban market, for example, still has an 18.0% vacancy rate, down just 10 bps in the past year, according to a year-end report just published by Colliers. The class A vacancy rate stood even higher at 19.3%.
However, bright spots do appear from time to time. In the past few months, for example, NAI Hiffman has completed seven leases at Edens Corporate Center, totaling nearly 36,000-square-feet. This will add some positive absorption to the submarket, which saw only 55,656-square-feet of it throughout the past year. Furthermore, the new leases have pushed the 188,000-square-foot center to 90% occupancy, and left only three spaces ranging in size from 2,500- to 11,000-square-feet in the pair of four-story buildings at 630-650 Dundee Rd. in Northbrook.
The Davis Companies acquired the class A center in 2012 and has since spent over $2 million on renovations, company officials say. New conference facilities were added, along with a new tenant lounge and café operated by Once Upon a Bagel, new monument signage, renovated restrooms, and interactive electronic lobby directories.
The new tenants, which took 11,289-square-feet of space, include IOR Global Services, Retail Solutions, Inc. and GovTemps USA. In addition, NAI Hiffman renewed four existing tenants: Mitchell Planning Associates, Iron Financial, Lidemara Enterprises, and O'Halloran Kosoff Geitner & Cook, LLC for a total of 24,429-square-feet.
"During the search for our new headquarters we wanted a high-quality building with an urban flair and on-site amenities, as well as a bright and collaborative space," says Rob Burns, CEO of IOR Global. "Our goal was to select a building which would appeal to both our current and prospective new professionals."
"We worked closely with our tenant-customers to give them what they're looking for so they will be successful in attracting and retaining the best and brightest employees. The results speak for themselves," says Duncan A.C. Gilkey, senior vice president with The Davis Companies.
Michael Flynn, Linda Garske, and Jason Wurtz, with NAI Hiffman's office services team, represented Davis in all seven transactions. John Burns of Keystone Realty Capital represented IOR; David EtsHokin of Tenant Advisors represented Retail Solutions; Victor Sanmiguel with Bespoke represented Mitchell Planning Associates; Kevin Clifton of CBRE represented Iron Financial; Gail Sturm of ProTen Realty Group represented O'Halloran Kosoff Geitner & Cook.
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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.
