CHICAGO—The north suburbs of Chicago have suffered the loss of some important tenants recently, including Motorola and Capital One. But even though the suburbs have had a tough time, there are still bright spots in the region. And officials from NAI Hiffman, who have just been awarded the leasing and management of Bannockburn Corporate Center, a class A property in north suburban Bannockburn that has struggled with a high vacancy rate, hope they can repeat their recent performance with a similar property.
As reported in GlobeSt.com, about 18 months ago NAI Hiffman, the Chicago-area representative for NAI Global, took over leasing duties at Edens Corporate Center in Northbrook. And by February, the company had signed a series of new leases and renewals at the 188,000-square-foot center and increased occupancy from 60% to over 90%.
Tenants currently occupy 62% of the Bannockburn center, a 210,000-square-foot building located directly off the intersection of Half Day Rd. and I-94 at 3000 Lakeside Dr. The building has a modern design with contemporary class A finishes, indoor executive parking, ample natural light, and large contiguous blocks of available space.
California-based Younan Properties Inc. bought the property back in 2006 when the market was hitting its zenith, but lost it to foreclosure when the economy collapsed.
And the loss of Motorola and Capital One earlier this year sent the submarket's vacancy rate soaring. One year ago, it had sunk to 17.7%, but by this year's first quarter it hit 21.7%, according to Colliers' most recent report. However, the area saw some more recent improvement, sinking 20 bps in the second quarter.
Class A vacancy in the area has followed the same pattern. A year ago it was 19.1%, then rose to 25.6% in the first quarter, and has just sunk to 25.4%. “Several large tenants are beginning to surface and tour the market - an encouraging sign,” Colliers says.
The NAI Hiffman leasing team of Linda Garske and Jason Wurtz, will market existing and upcoming vacancies.
“We are pleased that Bannockburn Corporate Center's new ownership recognizes our team's capabilities to reposition and promote office assets and we look forward to continuing our history of success,” says Bob Assoian, managing director of NAI Hiffman's management services team. “3000 Lakeside Drive is a high-quality real estate asset that we believe can effectively compete in the North Suburban submarket under the direction of our new management and leasing team.”
This new assignment follows NAI Hiffman's leasing and management win of the 486,000-square-foot Naperville Woods Office Center in west suburban Naperville. NAI Hiffman now leases and manages over 56.6-million-square-feet of office, industrial and retail space in the Chicagoland region.
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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.
