Oak Brook Keeps Another Global Headquarters

Commerce Plaza at 2015Spring Rd. in suburban Oak Brook.

CHICAGO— Sterigenics International LLC , a global provider of contract sterilization, gamma technologies and medical isotopes, has just signed a long-term lease for 27,506 square feet at Commerce Plaza in Oak Brook, IL. Sterigenics has occupied the location at 2015 Spring Rd. since 2001 and will expand from the 18,541 square feet it currently leases. It’s another win for the Oak Brook office market, which has seen a recent surge of interest from small- to mid-sized users, especially for class A properties like Commerce Plaza. The vacancy rate in Oak Brook recently hit 19.6%, a six-year low. And class A fared somewhat better with a rate of 18.3%. But a vacancy rate that high still gives tenants a bit of an edge. Savills Studley assisted Sterigenics in negotiating a favorable concession package that will help finance the build out of the expansion space as well as an extensive renovation to upgrade the company’s existing space to include new, open and collaborative work spaces.  In addition, the company’s name will be placed on Commerce Plaza’s soon-to-be-built monument signage at the entrance on Spring Rd. “Concession packages in the Oak Brook office market remain quite generous but landlords continue to push rental rates in order to achieve a higher sale price for the building,” Savills Studley corporate managing director Jon Azulay , tells GlobeSt.com. “For now, tenants are willing to “buy” higher face rents in return for greater concessions, such as free rent and TI, which help them offset higher construction costs and the higher rents. The key indicator of the market is a comparison of net effective rents over time.” Azulay and Savills Studley’s executive vice president and co-branch manager Robert Sevim represented the tenant in the transaction; Jeff Shay of JLL represented the landlord, The Blackstone Group LP . Rich Dale , corporate managing director of project management services for Savills Studley is providing construction oversight. “We have experienced considerable growth this past year driven by increased customer demand for Sterigenics’ services,” says M ichael Mulhern , chief executive officer of Sterigenics. “The additional space is much needed and are happy to keep our headquarters in Oak Brook.” Sterigenics operates out of 48 facilities in 13 countries across the Americas, Europe and Asia. The company and its affiliates serve more than 2,500 customers around the world and is owned by private equity firms Warburg Pincus and GTCR . Commerce Plaza is a seven-story, 510,000-square-foot, class A office complex located near I-88 and composed of three, 170,000-square-foot multi-tenant buildings. “In light of the news that several businesses are growing their presence Downtown, this transaction is a great example of a company that has recommitted itself to one of the more popular suburban office destinations in the Chicago area, taking advantage of the economic value, free parking and proximity to shopping and entertainment that Oak Brook offers,” says Azulay.