CHICAGO—The industrial submarket around I-55 in the southwest suburbs is tightening up as local companies see increased business and respond by taking up more space. And Mondi USA, an international packaging and paper company, just became the latest industrial user in the region to expand. It has signed a lease extension and expansion at 1140 Arbor Dr. in suburban Romeoville, where it had occupied about 120,000-square-feet. Starting in 2015, the company will move into space currently used by another tenant, and occupy the entire 171,812-square-foot building.

Founded in 1967, Mondi has locations in 30 countries and employs over 24,000 people. It has several facilities in the US including the Romeoville plant, which opened in 2000, serving the North American market. Company officials report that strong growth has resulted in increased workloads and hiring and made it imperative to expand. And in May 2013, Mondi engaged DTZ associate vice president Robert Tamillo, and DTZ senior vice president Anthony Burns of the DTZ Chicago industrial team to assist with an expansion.

Mondi and DTZ eventually decided that a complete move of the operation was out of the question due to cost concerns. Tamillo and Burns then negotiated an agreement with Chuck Canale and Jim Estus of Colliers International, who represented the landlord LaSalle Investment Management, that allowed Mondi to expand nearby into another facility short-term and then move back into 1140 Arbor when the adjacent tenant's lease expires in 2015. Additional details of the agreement were not released and DTZ did not return a call seeking more comment.