CHICAGO—The I-55 industrial market has gotten quite congested, and developers have started to push out into adjacent areas. And so far, it looks like the demand is there. Panattoni Development Co., for example, has just scored another tenant for its 355 Corporate Center, a speculative development in suburban Lockport. Illinois Industrial Tool, a distributor of value-priced hardware and tools, has signed a 166,092-square-foot lease at the project's second building. With this lease, only 62,598 square feet remains available at the recently-completed building, and Panattoni has announced its intention to develop a third spec building on the site.
“There's an ideal combination of factors in the I-355 corridor right now — there's steady and considerable absorption, but it's a land-constrained submarket,” Jason Rosenberg of Panattoni tells GlobeSt.com. “Space is getting absorbed as it's being developed — ideal balance of supply and demand. Every spec building in both of the major parks in Lockport has been absorbed shortly after completion, and with a measured pipeline of supply, we expect that trend to continue with Phase II of our project.”
Mark Barbato and Adam Stokes of Nicolson, Porter & List represented Panattoni in the transaction and Walter Murphy of Lee & Associates represented Illinois Industrial Tool.
As reported in GlobeSt.com, Panattoni, which has built more than 4,000,000 square feet in the I-55 corridor since 2001, recently expanded its presence to the I-355 corridor with the 50-acre 355 Corporate Center, developing this project with joint venture partner PCCP. Phase I consisted of two speculative light industrial buildings, the first of which was fully leased to UPS immediately after its completion. With building #2 more than 72% leased, Panattoni officials say they will develop a speculative 300,158-square-foot building scheduled for delivery in the second quarter of 2017.
In the first quarter of 2016, tenants agreed to occupy more than 1.1 million square feet of space in the I-355 area. Along with the UPS deal, LG Electronics signed a 363,224-square-foot lease and RJW Transportation took 512,265 square feet, both just a few miles north of 355 Corporate Center.
CHICAGO—The I-55 industrial market has gotten quite congested, and developers have started to push out into adjacent areas. And so far, it looks like the demand is there. Panattoni Development Co., for example, has just scored another tenant for its 355 Corporate Center, a speculative development in suburban Lockport. Illinois Industrial Tool, a distributor of value-priced hardware and tools, has signed a 166,092-square-foot lease at the project's second building. With this lease, only 62,598 square feet remains available at the recently-completed building, and Panattoni has announced its intention to develop a third spec building on the site.
“There's an ideal combination of factors in the I-355 corridor right now — there's steady and considerable absorption, but it's a land-constrained submarket,” Jason Rosenberg of Panattoni tells GlobeSt.com. “Space is getting absorbed as it's being developed — ideal balance of supply and demand. Every spec building in both of the major parks in Lockport has been absorbed shortly after completion, and with a measured pipeline of supply, we expect that trend to continue with Phase II of our project.”
Mark Barbato and Adam Stokes of Nicolson, Porter & List represented Panattoni in the transaction and Walter Murphy of Lee & Associates represented Illinois Industrial Tool.
As reported in GlobeSt.com, Panattoni, which has built more than 4,000,000 square feet in the I-55 corridor since 2001, recently expanded its presence to the I-355 corridor with the 50-acre 355 Corporate Center, developing this project with joint venture partner PCCP. Phase I consisted of two speculative light industrial buildings, the first of which was fully leased to UPS immediately after its completion. With building #2 more than 72% leased, Panattoni officials say they will develop a speculative 300,158-square-foot building scheduled for delivery in the second quarter of 2017.
In the first quarter of 2016, tenants agreed to occupy more than 1.1 million square feet of space in the I-355 area. Along with the UPS deal, LG Electronics signed a 363,224-square-foot lease and RJW Transportation took 512,265 square feet, both just a few miles north of 355 Corporate Center.
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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.
