CHICAGO—The metro area's industrial market had a solid year with its vacancy rate sinking to just 8.7%, a decline of 81 bps since 2012, according to Colliers' latest market report. And Oakbrook Terrace-based NAI Hiffman has started off the new year by completing a set of suburban transactions totaling more than 500,000-square-feet.
John Whitehead of NAI Hiffman recently represented COM2 Computer Recycling Solutions, for example, in their negotiations for an industrial lease covering the full building at 500 Kehoe Blvd. near its headquarters in suburban Carol Stream. The 4-year lease for 207,758-square-feet greatly expands the Carol Stream footprint of the electronics recycler.
"It was important for the facility to be in close proximity to COM2′s corporate office at 140 East Fullerton," says John Whitehead, vice president with NAI Hiffman's industrial services group. "In addition to its location, the building's rail potential and heavy power made it the best opportunity for its main processing facility."
The amount of vacant industrial space in the Central Dupage submarket fell from 8.5-million-square-feet in 2012 to just 6.4 million by the end of 2013, Colliers found. The last time that number fell below 7 million was in 2001.
John Cash, executive vice president, and David Haigh, vice president, also with NAI Hiffman's industrial services group, represented the owner, 500 Kehoe LLC. NAI, the Chicago-area representative for NAI Global, currently leases and manages a portfolio with more than 56-million-sqare-fett at 345 commercial properties throughout the metro area, including Northwest Indiana and Southeast Wisconsin.
Other recent transactions include:
- NAI Hiffman represented First Industrial Realty Trust, Inc. in the sale of 1850 Touhy Ave. to BK Equities for an undisclosed price. The 169,000-square-foot industrial property sits just southeast of the intersection of Rte. 83 and Landmeier Rd. in Elk Grove Village. BK Equities plans to keep the building and lease it to tenants in the O'Hare submarket. Eric Tresslar, executive vice president, Joe Bronson, vice president, and Kyle Barrett, an associate with the industrial services group, represented First Industrial and Matthew Stauber of Colliers represented BK Equities.
- NAI Hiffman also just finished representing Resource Plastics in a long-term lease for 170,563-square-feet of industrial space at 5623 W. 115th St. in southwestern suburban Alsip with KTR Capital Partners. KTR Capital recently redeveloped the 399,511-square-foot industrial property to attract new tenants. And Resource Plastics, a major plastic recycling, manufacturing and raw material distribution company, decided to relocate from nearby Blue Island. Steve Connolly, executive vice president, with NAI Hiffman's industrial services group, represented Resource Plastics and Pete Roberson and Larry Johnson of CBRE represented KTR.
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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.
