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New Specs Going Up in SE Wisconsin

CHICAGO—CenterPoint Properties is the most active industrial developer in the Chi. region, and has now launched another project in SE WI.

By Brian J. Rogal | brianjrogal | | Updated on April 27, 2016

 

chi-centerpointElevationRendering (3) “The vacancy rates in Southeast Wisconsin are at near historic lows, particularly in LakeView,” says Whit Heitman of NAI Hiffman. “There is a major shortage of this type of product available in the market, especially in such a prime location.”
CHICAGO— CenterPoint Properties is by far the most active industrial developer in the Chicago metro region, and has just decided to add another spec project to its to-do list. Officials from the Oak Brook, IL-based company say they plan to develop a new 200,696 square foot speculative building located within their LakeView Corporate Park in Pleasant Prairie, WI, just north of the state boundary. Although leasing activity in this submarket was a bit slow throughout much of 2015, that followed several very robust years, and absorption remained healthy due to several big build-to suits that were occupied. Furthermore, demand remains strong and with several other specs nearly ready, experts believe that leasing activity will pick up in 2016. “There is very low vacancy of not only class A, but of all building types in the Southeast Wisconsin market,” Edward Harrington , senior vice president of development at CenterPoint, tells GlobeSt.com . “We expect good tenant demand for the space with such low vacancy. We are developing a building with good market flexibility for single or multi-tenant use and we feel good about market demand.” “This building is located at the entrance to the park offering great visibility and perfect for companies with showroom or wholesale uses,” he adds. “Overall, this is an exceptional opportunity for a company looking for a quality building in a premier business park setting.” CenterPoint could divide the new spec into spaces as small as 60,000 square feet and accommodate up to three tenants. The building will feature LED lighting, 32′ clear height, 20 exterior docks (expandable), 2 drive-in doors, 18 trailer-parking positions and office space to suit the client’s requirements. Sam Badger , Whit Heitman and Brad Weiner of NAI Hiffman will market the facility. LakeView Corporate Park offers tenants logistical advantages with immediate access to I- 94 and is served by Canadian National and Union Pacific rail lines. More than 80 companies occupy space in LakeView Corporate Park, where they employ more than 8,500 people and represent more than 11 million square feet of development. “Being located between Chicago and Milwaukee, LakeView Corporate Park is the premier location for businesses in Southeast Wisconsin,” says Badger. “The park is spread over 2,400 acres with more than 200 acres remaining for additional development and build-to-suit projects. We know that we can help solve a company’s real estate needs in this park.” The vacancy rate at the end of 2015 was 4.55%, according to a report by Colliers International.. Although Southeast Wisconsin saw few significant leases completed in 2015, “ this is not a cause for concern for the market, as the area is subject to periods of few sizeable leases followed by two or three large leases the subsequent quarter. The vacancy rate is expected to rise during 2016 as under construction and planned speculative construction projects are completed. However, leasing activity is expected to pick up, as there are currently two pending leases greater than 400,000 square feet each.”

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