Even as sales slow, investors still paying top dollar for Chicago industrial properties
By Dan Rafter, Editor
While investment activity in the Chicago industrial sector has slowed significantly since its height in 2021, the average price-per-square-foot that investors are paying for
Image by Marcin from Pixabay
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Even as sales slow, investors still paying top dollar for Chicago industrial properties While investment activity in the Chicago industrial sector has slowed significantly since its height in 2021, the average price-per-square-foot that investors are paying for warehouses, distribution centers and manufacturing space has remained steady, according to the latest research from Avison Young.
4
Bad news for a formerly booming sector: U.S. industrial vacancy rates rise to highest level in nine years The U.S. industrial vacancy rate increased by 40 basis points in the second quarter, reaching 6.1%, the highest level in nine years, according to the latest research from Cushman & Wakefield.
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Champion Realty Advisors’ J.D. Salazar: Even the niche industrial service facility market isn’t immune to high interest rates and a transportation industry recession J.D. Salazar has long understood the benefit of targeting a niche. It's why the firm he founded, Willowbrook, Illinois-based Champion Realty Advisors, specializes in investing in and managing industrial service facilities.
10
The numbers don't lie: Construction, absorption both falling in U.S. industrial market In its most recent market snapshot, Savills reports that the country's industrial sector saw 45.5 million square feet of absorption in the second quarter. That's down nearly 30 million square feet from a year ago.
12
Measuring the strength of the Chicago industrial landscape The Chicago Chapter of The Society of Industrial and Office Realtors (SIOR) hosted its Speaker Series luncheon at The Glen Club in Glenview, Illinois.
14
Facing the challenges, prepping for increased activity: Large crowd optimistic for future at CIP’s Chicagoland Mid-Year Industrial Summit The Chicago industrial market, despite its sound fundamentals, is facing more challenges today.
16
Ryan Companies US marks groundbreaking of 170,000-square-foot spec industrial project in Chicago's Pullman Crossings Ryan Companies US, Inc. has formed a joint venture with Washington Capital Management Inc.. and announced the financial land closing and groundbreaking of a 170,000-squarefoot speculative industrial facility at Pullman Crossings in Chicago.
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Bad news for a formerly booming sector: U.S. industrial vacancy rates rise to highest level in nine years
By Dan Rafter, Editor
The U.S. industrial vacancy rate increased by 40 basis points in the second quarter, reaching 6.1%, the highest level in nine years, according to the latest research from Cushman & Wakefield.
Despite this rise in vacancy, though, industrial absorption doubled in the second quarter, with 46.3 million square feet of space taken off the market, a sign that even with a higher vacancy rate, the U.S. industrial sector still boasts strong market fundamentals.
Jason Price, Americas Head of Logistics & Industrial Research at Cushman & Wakefield, said that while no one likes to see higher vacancy rates, the vacancy rate in the industrial sector remains well below the 10-year pre-pandemic average of 7%.
"Despite the rise in vacancy, industrial markets are showing increasing levels of demand after a sluggish first quarter," Price said. "New supply is leveling off as
developers wait for the market to catch up. We expect that vacancy will peak early next year at 6.7% as the markets stabilize."
Asking rent growth continued to cool, with nationwide rents rising 3.7% yearover-year, driven by the Northeast (+5.3%) and South (+2.9%) regions.
Quarterly leasing activity was 137.2 million square feet, down 2.8% from the 141.1 million square feet reported in the first quarter. However, the second quarter total was 11.2% higher than the 10year pre-pandemic quarterly average of 126.9 million square feet.
The U.S. registered 278.4 million square feet of new deal activity through midyear, putting the market on pace to surpass the 500-million-square-foot mark for the 10th straight year. These normalized levels of deal volume are partially due to moderating consumer demand, longer transaction times and, in some cases, decreasing average deal sizes.
Seven markets recorded more than 10 million square feet of leasing activity through midyear, led by the Inland Empire (22.1 million square feet), Dallas/ Ft. Worth (19.2 million square feet) and Houston (16.7 million square feet).
New construction deliveries remained robust, with 121.1 million square feet of new product completed in the second quarter, on par with the previous quarter. This pushed the year-to-date total to 239.6 million square feet, the second-highest midyear total on record, 84% of which was speculative. The South region continues to account for the highest share of new deliveries (48.3%), with markets such as Atlanta, Dallas/Ft. Worth, Savannah, and Houston delivering large amounts of new industrial space.
Construction starts remained relatively muted in Q2, although up slightly compared to the first quarter. The under-construction pipeline fell to its lowest level (343.3 million square feet)
since mid-2020 (334.8 million square feet). The pipeline has declined by 14.4% since Q1 and is down 46% from a year ago. The South (-118%) and Midwest (-99%) regions posted the sharpest pipeline declines during the same period.
Of the national under-construction pipeline total, speculative product makes up 67.7%, down from 71.4% in the first quarter. This share is likely to decrease further in the second half of 2024 as speculative warehouse facilities continue to deliver at a healthy rate and build-to-suit manufacturing facilities remain under development due to their longer construction timelines.
“Industrial markets continue to show strength and resilience, even as they adjust and level-set following the pandemic boom,” said Price. “As development slows to meet demand and absorption catches up to supply, we will see the markets find balance.”
Image by Pixabay.
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Champion Realty Advisors’ J.D. Salazar: Even the niche industrial service facility market isn’t immune to high interest rates and a transportation industry recession
By Dan Rafter, Editor
J.D. Salazar has long understood the benefit of targeting a niche. It's why the firm he founded, Willowbrook, Illinois-based Champion Realty Advisors, specializes in investing in and managing industrial service facilities.
These facilities, also known as outdoor storage facilities, are used mainly by transportation companies to store, maintain or dispatch vehicles, equipment and materials. Companies involved in the equipment rental and repair industries also occupy these facilities.
Investors have long overlooked this segment of the industrial real estate
market. This isn't surprising: Many investors are focused on warehouse and distribution space, a segment of the commercial real estate market that until recently was hot.
Industrial service facilities, though, offer another option for investors who are looking to diversify their commercial real estate holdings. And while even this subsector of the industrial market is struggling today thanks to high interest rates, Salazar says that these facilities are still an attractive option for investors looking to branch out with their dollars.
We spoke with Salazar, chief executive officer of Champion Realty Advisors,
about the benefits of investing in industrial service facilities, why he's focused on this niche for so long and when he expects the industry to begin its rebound from the impact of high interest rates.
Why have industrial service facilities been such a niche side of the industrial market for so long?
J.D. Salazar: I’ve been in this specific business for decades, long before industrial outdoor storage space and logistics-related real estate became the favored niche in the industrial sector. I was looking for something different and for something that I knew could provide
solid returns and performance. Industrial service facilities fit that.
The amount of money targeted by institutional investors for industrial real estate in general has grown significantly since I entered this business. When I started in 1985, you didn’t have REITs. You didn’t have the BlackRocks and Brookfields of the world. The bigger investors weren’t putting money into industrial. The entrepreneurs and insurance companies were the ones buying and investing in industrial real estate. That changed rapidly in the 1990s. The REITs began raising money. Private REITS and massive private equity funds
J.D. Salazar (Photo by Champion Realty Advisors.)
began pouring money into industrial real estate.
Even in the 1990s and most of the early 2000s, industrial service facilities remained a niche that was pretty much under the radar. The institutional investors couldn’t buy $150 million of these facilities. Most of the transactions for industrial service facilities are in the $5 million to $10 million range. An institutional investor might want to buy a 1-million-square-foot building. To do the same thing with industrial service facilities, they’d have to buy 10 to 15 properties. The easiest path for institutional investors to allocate their resources continued to be by investing in the big industrial buildings.
Are more companies and investors getting interested in industrial service facilities?
Salazar: There were guys like me and a few others who recognized the value in aggregating industrial service facilities. You are seeing more of that today. A lot of companies that have secured capital from bigger institutions are aggregating the assets into a pool that will eventually contain half-a-billion dollars’ worth of assets. This approach has become more popular since 2016 and 2017.
" The amount of money targeted by institutional investors for industrial real estate in general has grown significantly since I entered this business."
Still, even with the increased attention they are now receiving, industrial service facilities are still relatively scarce. I’ve done the research. The share of industrial service facilities or outdoor storage facilities in the general industrial supply in, say, Chicago, is maybe 4% to 5%. That is pretty much the same across the board in other markets. It’s even less in markets like Miami and Seattle, where these facilities make up closer to 3% of the total industrial base.
Then there’s a market like Houston, which probably has the largest percentage of industrial service facilities in its
industrial market. It’s still less than 10% of the overall industrial market, but it’s more in the 7% or 8% range. Why? Houston has always been an oil-industry area. The oil industry relies heavily on industrial support and storage for the different equipment that goes into drilling and producing wells.
Are you seeing a slowdown in investment sales in this niche?
Salazar: The whole industrial service facility market has slowed down because of higher interest rates. Look at a market like Fort Worth, Texas. That is a mega
industrial market. Investment sales in the industrial service facility submarket here have slowed significantly, too. There are several reasons for this.
We are heavily tied to the transportation industry. That industry right now is in its 24th month of a major recession, with no sign that it is going to change dramatically during the rest of the year. During the last year, many of the smaller independent trucking companies started to fall by the wayside. Now even
SALAZAR (continued on page 8)
"The spread between what sellers are asking and
the bigger companies are reporting reduced earnings and higher expenses. That trickles down to us. Our tenants are going bankrupt and going out of business. They don’t have the resources to hang in there any longer.
One of the mantras of the transportation business had been to survive until ’25. Now we’re not sure if 2025 will be any better than 2024.
The other reason for the slowdown in investment sales has been because interest rates are so high. That will continue to be a problem until those rates finally start to fall.
The last major hurdle we face is that the spread between what sellers are asking and buyers are bidding for properties is still pretty significant. There is still a long way to go before the buyers and sellers get close enough to make deals happen again on a regular basis. The bid and ask spread is too wide right now. It is hard to make a deal that is comfortable for both parties. It’s not impossible. Some deals are still happening. But they are not happening at the same pace as they were in 2019, 2020 and even 2022. It started slowing in the middle of 2023.
How are you and your company getting through these slower times?
buyers are bidding for properties is still pretty significant."
Salazar: You have to get leaner with your organization. It has to be as lean as it can get. You also have to be very careful with the opportunities that you chase. In the middle of last year, we switched from a rent-growth strategy to an occupancy maximization strategy. We haven’t raised our rental rates in most of our markets. We have actually cut our rates in some. We did this in Dallas-Fort Worth to increase our occupancy. That’s how you must do it. You maintain a lean operation and hope that you have some rent flexibility so that you can lower rents when you need to.
You mentioned that you also manage industrial service facilities in the Memphis market. How is that market performing today?
Salazar: It has been slow, too. It’s not because there is an oversupply of facilities in Memphis. It’s a strong transportation hub. What we are seeing there is entirely because of the recession in the transportation industry. We opened a yard there earlier this year, in February. Leasing has been slow so far. We have had a lot of companies looking. But we have not yet landed a major tenant. We have some small tenants. But our yard is 38 acres. That is a big yard. We’re hoping to land some major tenants soon.
But long term, we believe that Memphis is a growth market. We feel the same way about South Florida. We have a 60acre yard under construction south of Miami. That will be ready for occupancy in late December of this year. We are very confident that this property will
do well. But it will probably take us 18 months to get that yard into the 90% occupancy range. We have high hopes for our new Memphis yard, too. We should have more than 50% of the land there leased by the fourth quarter.
Do you think more investors and companies will get into the industrial service facility niche, especially once real estate sales activity starts picking up again?
Salazar: I think this sector will stay active. You have enough institutional awareness now that I believe that industrial outdoor storage and service facilities will be part of every institution’s investment strategy. It might continue to be a small percentage of their portfolios, but it is not going away.
SALAZAR (continued from page 7)
NTP Miami. (Photo courtesy of Champion Realty Advisors.)
er interest rates have kept investors largely on the sidelines.
According to research released last week by Avison Young, since 2018, the average price-per-square-foot for industrial space in Chicago has increased 38%. Avison Young says that this steady increase has been driven by robust demand, showing that the overall health of the industrial sector here is strong despite slowing investment sales.
Avison Young reported that the average price-per-square-foot of industrial real estate in Chicago stood at $100 in 2023. That’s up from $98 in 2022 and $87 in 2021. So far in 2024, that price-per-square-foot figure has jumped to $105.
This is a significant increase from 2018’s price-per-square-foot of $76 in the Chicago industrial market.
Investment sales do remain sluggish in the Chicago industrial market, though. Avison Young reported that these sales were down 50% in 2023 when compared to the year prior. And sales look to fall even further this
year. You can blame much of this on today’s higher interest rates.
During the past 12 months, the O’Hare industrial submarket has been the
most active in terms of sales volume, with Avison Young reporting $781.2 million worth of transactions. Next was the South I-55 corridor submarket with $439.3 million transacting.
As Avison Young says, both of these submarkets have remained popular to investors and users because of their close access to vital interstates and O’Hare International Airport.
Photo by Pixabay.
The numbers don't lie: Construction, absorption both falling in U.S. industrial market
By Dan Rafter, Editor
Need further proof that demand in the once red-hot U.S. industrial market has slowed? In its most recent market snapshot, Savills reports that the country's industrial sector saw 45.5 million square feet of absorption in the second quarter. That's down nearly 30 million square feet from a year ago.
According to Savills' numbers, the United States saw 74.4 million square feet of industrial absorption in the second quarter last year, a far more robust number than the 45.5 million square feet it saw in the second of 2024.
Other numbers show industrial's slowdown, too. Savills reported 410.5 million square feet of new industrial properties under construction in the second quarter of this year. That,
too, is down significantly from the same quarter a year ago, when 707.3 million square feet of industrial properties was under construction.
Then there's the sector's vacancy rate.
According to Savills, the U.S. industrial sector's vacancy rate rose to 7.1%
in the second quarter, up from 4.7% a year ago.
Deliveries also fell, though by a smaller amount. Savills said that the United States saw 113.8 million square feet of new industrial product hit the market in the second quarter, down from 154.1 million square feed during the same quarter 12 months ago.
The only number that didn't drop? Asking rental rates. According to Savills, the average asking rental rate stood at $9.53 a square foot in the second quarter. That is up from an average of $9.22 a year ago.
Savills also reported that a record 185.3 million square feet of sublease space is on the market for lease. That is up 58% from last year and still rising.
Image by Pixabay.
Measuring the strength of the Chicago industrial landscape
By Bill Lussow
On June 19, the Chicago Chapter of The Society of Industrial and Office Realtors (SIOR) hosted its Speaker Series luncheon “The Chicago Industrial Landscape—Current Trends and Future Projections” at The Glen Club in Glenview, Illinois.
I was pleased to moderate a candid discussion with leading commercial real estate experts in the manufacturing and supply chain industries. The panel included Michael Clewlow, vice president of acquisitions at Venture One Real Estate; Joe Macchione, vice president at Brennan Investment Group; Caitlin Sullivan, senior vice president and market officer at Link Logistics; and Robin Stolberg, managing director of acquisitions at Clear Height Properties. They discussed the macro economy, the strength of the Chicago area market, and more.
I inquired about the current state of the industrial market considering recent economic and market conditions. Sullivan emphasized the difficulty of cutting through the headlines to understand
the true impact of the macro economy on daily operations.
“Some of those things are definitely impacting customers and their deci-
sion-making and how much risk they're willing to take on. But I think the fundamentals of industrial, specifically, are still really strong,” she said.
Sullivan noted that Chicago’s industrial submarkets have different strengths, availability and demand drivers. She added that overall, in Chicago, the market has been strong and will continue to be so.
Panelists noted that often, transaction volume is a key measure, but the sentiment can vary daily based on experiences. “We try to combine hard data with feedback from customers and the real estate community to get a comprehensive understanding,” Sullivan said. “While the overall volume in Chicago has decreased year over year, our portfolio shows an increase in deal count, indicating more movement in smaller transactions.”
Macchione explained that older and smaller properties are performing better when compared to new construction, consistent with national trends. He noted that properties built in 2020 and
later currently have a 21% vacancy rate when compared to Chicago’s overall vacancy rate of about 5%.
How Investors Are Navigating Volatili-
ty
Over the past 12 to 18 months, the capital markets have remained volatile, posing both challenges and opportunities for investors in industrial real estate. Clewlow highlighted that, particularly last year, many institutional investors stayed on the sidelines because of interest-rate fluctuations and market uncertainties. This presented a unique opportunity for his firm to adopt a contrarian strategy and capitalize on undervalued deals. As a result, it executed more transactions in the last year than in 2021 and 2022 combined.
Currently, the state of the capital markets is showing signs of improvement, he added. “From an institutional investment standpoint, deals that are on the market attract 10 to 15 offers, a significant increase from the three to five offers seen last year, indicating a healthier market environment.” Howev-
Bill Lussow (Photo courtesy of Chicago chapter of SIOR.)
The Chicago Chapter of The Society of Industrial and Office Realtors recently hosted its June Speaker Series luncheon “The Chicago Industrial Landscape—Current Trends and Future Projections” at The Glen Club in Glenview, Illinois. (Photo courtesy of SIOR Chicago.)
er, he added that securing financing remains a significant hurdle, with lenders maintaining stringent conditions and cautious approaches.
In the long term, Clewlow said that industrial real estate is expected to receive increased allocations from institutional investors, such as pension funds, which historically allocated around 5% to real estate. The sector is attracting both new and long-term buyers, he explained, suggesting a promising outlook over the next 10 to 20 years.
Flexible Leasebacks Drive Successful Acquisitions
When discussing recent acquisitions, Stolberg revealed that Clear Height Properties has acquired eight assets this year, with two more under contract. This brings the company’s current total to 94 assets, aiming to reach 100 by year-end. He emphasized a preference for acquiring individual assets experiencing generational changes, where new leadership prefers not to own the real estate.
“We have found success in flexible, short-term leasebacks, offering 12- to 18-month leases with early termination options, which are attractive to both the current and incoming businesses,” Stolberg said.
Shifts in Rental Rates, Occupancy Time
Panelists indicated they are grappling with the rental rate discussion. Overall, large deal volume is down, but velocity in smaller transactions is helping maintain or even increase rental rates. Macchione, whose properties are primarily in Chicago, has observed robust rental growth from the onset of COVID-19 to the present, although it has recently tapered back. “We are in a bit of a stabilization or plateau,” he said. “It does seem like there's a bit more pushback coming from tenants lately, but we are still bullish. We are still closing deals at or above what we were yesterday and the day before.”
Clewlow touched on the impact of prioritizing retaining occupancy over driving rental rates. "It will be interesting to monitor how larger institutions on a national level handle this and how it affects our rental growth."
Diverse Market Needs Drive Growth
When it comes to demand, Stolberg said that Chicago is fortunate with total inventory of more than 1 billion square feet, but that headlines paint a misleading picture of the city, suggesting a migration to the suburbs driven by demographic shifts. Additionally, the rise of omni-channel retail, he said, with its complex customer interactions and varied modes of buying, is driving the need for more space, benefiting portfolios with units in the 10,000- to 30,000-square-foot range. He also pointed out that there is notable growth in the service industry, including HVAC and plumbing businesses, as people
"We have found success in flexible, short-term
leasebacks, offering 12- to 18-month leases with early termination options, which are attractive to both the current and incoming businesses."
invest more in home improvements. “These businesses have experienced robust cycles recently, contributing to the overall demand in the market.”
Tech’s Influence on Operations
Technology has changed industrial real estate from an operational standpoint. Macchione explained that EV charging stations, LED lights and anything that is making buildings more efficient like ESG initiatives are mostly tenant-driven.
Sullivan agreed and pointed out that especially with the larger customers, “They have ESG initiatives that we are constantly engaging with to understand their goals and determine how we can support them.” Basic offerings, like LED packages, are just the beginning, she said. Sullivan noted that in their new developments they are implementing solar roofs, EV chargers and other sustainable solutions to exceed market expectations and achieve LEED certifications.
Overall, the SIOR Speaker Series luncheon provided valuable insights into the industrial real estate market highlighting key trends and projections, such as the strength and resilience of the local market, the impact of economic conditions on investor strategies and the role tech and ESG initiatives play in shaping the future of the industry.
Bill Lussow is treasurer of the SIOR Chicago Chapter and principal of Bespoke Commercial Real Estate in Chicago.
The Chicago Chapter of the Society of Industrial and Office REALTORS ® (SIOR) boasts 165 elite commercial and industrial practitioners in the Chicago metropolitan area real estate market. Real estate professionals who have earned the SIOR designation are recognized by corporate real estate executives, commercial real estate brokers and agents, lenders, and
other real estate professionals as the most experienced, capable and ethical practitioners in any market. The global SIOR organization holds more than 2,800 members in 480 cities in 20 coun-
tries. A professional affiliate of the National Association of REALTORS®, SIOR maintains a commitment to business and industry by providing outstanding
Facing the challenges, prepping for increased activity: Large crowd optimistic for future at CIP’s Chicagoland Mid-Year Industrial Summit
By Dan Rafter
There’s no sugarcoating it: The Chicago industrial market, despite its sound fundamentals, is facing more challenges today. And those challenges are largely stemming from higher interest rates that have choked off the stream of investment sales in this sector.
A large crowd of industrial professionals filled The Carlisle in Lombard, Illinois, on June 20 for the 21st version of the Chicagoland Mid-Year Industrial Summit held by Chicago Industrial Properties.
These attendees were realistic: The days of booming industrial sales activ-
ity are over for now. Sales activity has plummeted since the COVID-fueled heydays of 2021 and 2022.
But attendees and panelists also agreed that the fundamentals of Chicago’s industrial sector remain strong. Companies still need warehouse, distribution and manufacturing space. And Chicago
"Attendees and panelists also agreed that the fundamentals of Chicago’s industrial sector remain strong"
remains a go-to market for these companies.
After all, consumers want their products delivered to their doors in record time. Chicago’s location in the center of the country; its proximity to two major international airports; its strong network of highways and rail; and the strength of its labor force all combine to make Chicago an attractive destination for end users seeking industrial space.
There is hope, too, that with interest-rate stability — the Fed is apparently done increasing its benchmark interest rate — sellers and buyers will once again be able to agree on sales terms. This could provide a boost to the lagging number of investment sales in the industrial sector.
For now, though? The Chicago industrial market remains in a bit of a holding pattern: Sales prices for industrial assets remain high. Tenants are still interested in leasing space. But everyone is still waiting for buyers and sellers to become active again.
This year's Summit opened up with the Evolving Market, Leasing Trends and Capital Markets Assessment panel. Participating in this discussion were moderator Dan Smolensky, Principal, TMG Real Estate Advisors; Kelly Disser, Executive Vice President, NAI Hiffman; Megan Barker, Associate, Cushman & Wakefield; Jason DeFilippis, Investment & Leasing Officer, EQT Exeter; Josh HEarne, Principal, Cawley CRE; Max Hoye, Director of Leasing, Clear Heights Properties.
The event's second panel, Developmet & Construction Maeket Insights, featured Barry Missner, CEO, The Missner Group; Moderator Paul Heitman, Heitman Architects; Matthias Trizna, Vice President - Development and Sales, Northern Buiders, Inc.; Brian Keller, Outreach Service Provider, COMED Energy Efficiency Program; Dave Michael, VP of Sales, PEAK Construction Corporation.
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Ryan Companies US marks groundbreaking of 170,000-square-foot spec industrial project in Chicago's Pullman Crossings
By Dan Rafter
Ryan Companies US, Inc. has formed a joint venture with Washington Capital Management Inc.. and announced the financial land closing and groundbreaking of a 170,000-square-foot speculative industrial facility at Pullman Crossings in Chicago.
Pullman Crossings is a 50+ acre industrial park that is part of Pullman Park, a 180-acre, mixed-use development being developed by Chicago Neighborhood Initiatives (CNI). This project marks Ryan’s third phase of Pullman Crossings with the fourth and final phase expected to kick off later this year.
“In an area where building speculative industrial was unheard of, we envi-
"We looked beyond the challenges and invested in the promise of Chicago’s South Side."
sioned a revival of seemingly undevelopable land,” said Kyle Schott, vice president of real estate development for Ryan Companies, in a statement.
“We looked beyond the challenges and
Rebuilding Stronger Together
invested in the promise of Chicago’s South Side. By betting on ourselves and the community, we’ve resurrected the site’s former glory.”
The 10-acre site, located in Chicago's historic Pullman neighborhood at
In 2023, Morgan Li, a custom manufacturer offering innovative fixtures, furniture and graphics solutions for retail and hospitality brands, lost their Chicago Heights warehouse in a fire. Now, Principle is helping guide the family-owned business through the rebuilding process with the level of expertise and care we’re best known for. The project includes the construction of two buildings totaling 276,775 SF on the 14.5-acre site, and will not only restore what was lost, but also provide new, state-of-the-art enhancements. Morgan Li prides itself on transforming spaces into unforgettable experiences for its clients, and Principle is excited to help do the same through the construction of this new facility.
PULLMAN CROSSINGS (continued on page 18)
(continued from page 16)
103rd Street and South Woodlawn Avenue, is just minutes away from major interstates including the Bishop Ford Expressway, Highway 20 and Interstate 57. The building will include desirable amenities such as outdoor eating areas, exterior bike racks, ESFR fire protection, and a 32-foot clearance height in the warehouse. The flexible design will accommodate a wide range of uses including warehousing and distribution, light manufacturing and several other light industrial uses, as well as provide new Class A space to a supply-constrained submarket.
"Breaking ground on this new 170,000-square-foot industrial facility is another important milestone for Pullman Crossings because it will create dozens of jobs and catalyze additional opportunities that will build a stronger community and a bright future for the Lake Calumet region,” said David Doig, president of CNI, in a statement.
Ryan is developing and building the facility. Bankers Trust Company is providing the construction financing for the project. The third phase of
“We put our market expertise to work to empower our clients and help maximize their growth.”
For over 45 years, DarwinPW Realty has been a leader in industrial and commercial real estate. The company specializes in brokerage, property management, investment and development services primarily in the Midwest. DarwinPW Realty’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our clients best.
Chris Mergenthaler Vice President
Pullman Crossings is expected to be completed by Q1 2025.
Dating back to 2017, Ryan developed and built three industrial facilities to -
taling 685,000 square feet at Pullman Crossings which includes the Whole Foods Midwest Distribution Center, a SC Johnson warehouse, and an Amazon last mile distribution center. This
industrial park has created approximately 600 jobs to date and has transformed what was previously one of the largest undeveloped sites in Chicago.
Photo courtesy of Ryan Companies.
PULLMAN CROSSINGS
CIP MARKETPLACE
ASSET/PROPERTY MANAGEMENT FIRMS
ALVAREZ & MARSAL PROPERTY SOLUTIONS
205 W Wacker, Ste 516 Chicago, IL 60606
P: 312.606.0966
Website: ampsre.com
Key Contacts: Kevin Halm, Managing Director, khalm@ampsre.com; Pete Kontos: Managing Director, pkontos@ampsre.com
Services Provided: AM-PS provides property management, project management, and brokerage services to owners and occupiers of office, retail, and industrial real estate. Company Profile: AM-PS was born out of the desire to take the strategic mindset and processes of the renowned business restructuring firm Alvarez & Marsal and reframe them for the commercial real estate world. Our approach solves problems, improves performance, and unlocks value for our clients. Our work has positively impacted real estate and those who interact with our properties nationwide.
OUTLOOK MANAGEMENT GROUP, LLC AMO
S74 W16853 Janesville Road
Muskego, WI 53150
P: 414.369.3511 | F: 414.435.0251
Website: outlookmgmt.com
Key Contact: Ray Balfanz, President/Partner, ray@outlookmgmt.com
Services Provided: Full service property and asset management services, financial analysis and reporting; budget preparation and expense reconciliations; lease administration; construction management; preventative maintenance and consulting services.
Company Profile: Outlook Management Group, LLC AMO provides comprehensive property and asset management services for all asset classes in multiple states and markets.
Notable Properties Managed: Washington Corners, Naperville, IL; Ironwood Office Park, Glendale, WI; Wood River Condominiums, West Bend, WI; Seven 10 West Luxury Apartments, Chicago, IL; MDJD Aesthetic MOB, Rockford, IL, Ascension Health MOB Milwaukee, WI; Henry Ford Health Systems Pharmacy Services Bldg. in Rochester Hills, MI; Henry Ford Medical Center in West Bloomfield, MI; Baptist Medical Center South, Montgomery, AL; and Lee Memorial Health Systems Building in Fort Myers, FL.
Services Provided: SpaceShifts is a platform for optimizing vacant workspaces, not subleasing. It enables the options of utilizing vacant workspaces, sharing staff overhead, and amenities, and helping businesses maximize their property and resources.
Company Profile: SpaceShifts is a unique platform connecting individuals seeking workspace with businesses having extra space to rent. Terms are flexible and arranged by the parties involved. The service is currently free. Sign up at SpaceShifts.com to explore this opportunity.
CONSTRUCTION COMPANIES/GENERAL CONTRACTORS
MERIDIAN DESIGN BUILD
9550 W. Higgins Road, Suite 400 Rosemont, IL 60018
P: 847.374.9200 | F: 847.374.9222
Website: www.meridiandb.com
Key Contact: Paul Chuma, President; Howard Green, Executive Vice President
Services Provided: Meridian Design Build provides construction and design/build construction services on a national basis with a primary focus on industrial, office, medical office, retail and food and beverage work.
Company Profile: With a team of in-house professional project managers, Meridian has extensive experience coordinating the design and construction of new buildings, tenant improvements, and additions/renovations from 15,000 square feet to 1,000,000+ square feet. Meridian Design Build has been a Member of the U.S. Green Building Council since 2007.
Notable/Recent Projects: Venture Park 47, Huntley, IL - 729,800 sf speculative industrial facility for Venture One Real Estate. Lion Electric, Joliet, IL - 928,500 sf electric bus / medium duty truck assembly plant for Clarius Partners. Greenwood Truck Terminal, Greenwood, IN - 125 door truck terminal on 43 acres for Scannell Properties.
PRINCIPLE CONSTRUCTION CORP.
9450 West Bryn Mawr Ave., Suite 120 Rosemont, IL 60018
P: 847.615.1515 | F: 847.615.1598
Website: pccdb.com
Key Contacts: Mark L Augustyn, COO, maugustyn@pccdb.com, James A.. Brucato, President, jbrucato@pccdb.com
Services Provided: Principle specializes in commercial and industrial property and is committed to providing clients with the highest level of design/build construction services with an absolute dedication to each project.
Company Profile: Design/Build General Contractor established in 1999 specializing in the design and construction of Build-to-Suit, Speculative, Retail, Food Processing, Expansions/Additions, Tenant Improvements, & Specialty Facilities. Principle also has extensive experience in interior improvements, site evaluation, due diligence, and value engineering.
Recently Completed Projects include:
• 282,588 SF dry-cleaning facility for Tailored Brands, at 2000 Deerpath Rd. in Aurora, IL.
• 31,200 SF facility for Alvil Trucking, at 2570 Millenium Dr. in Elk Grove Village, IL
• 6,200 SF Warehouse for Superfast Trucking, at 1001 Raddant Rd. in Batavia, IL
VICTOR CONSTRUCTION
2000 Center Dr., Suite East C219 Hoffman Estates, IL 60192
Services Provided: Victor Construction Co., Inc. manages projects from ground-up site developments to interior buildouts, specializing in retail, industrial, and commercial markets.
Company Profile: Victor Construction Co., Inc. remains a family-owned and operated General Contractor. Having been in business since 1954, our firm has extensive experience managing every aspect of interior construction for the corporate, manufacturing, industrial, and retail sectors.
Notable/Recent Projects: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.
Recent CRE Activity: Double Track Northwest Indiana: $1.6 Billion development reducing train travel to Chicago to 60 minutes; The Franklin at 11th St. Station: $100 Million Development with Residential & Retail Space; “You are Beautiful”/SoLa: $311 Million Mixed-Use Multi-Family Development with 235 boutique hotel rooms & 174 Luxury Condos; Burn ‘Em Brewing: $3 Million Expansion project with 30 new jobs.
RE LAW FIRMS
WORSEK & VIHON, LLP
180 North LaSalle Street, Suite 3010
Chicago, IL 60601
P: 312.917.2307 P: 312.917.2312 | F: 312.596.6412
Website: wvproptax.com
Key Contacts: Francis W. O’Malley, Managing Partner fomalley@wvproptax.com; Jessica L. MacLean, Partner jmaclean@wvproptax.com
Services Provided: Worsek & Vihon, LLP represents tax payers in Illinois by limiting their property tax liabilities through ad valorem appeals. We have over 40 years of experience and can handle basic to the most complex assessment issues while offering the dependable, personalized attention our clients deserve. We have experience representing owners of all property types. In addition to filing thousands of appeals with the Cook County Assessor, we have been involved in numerous proceedings before various Boards of Review, the Illinois Property Tax Appeal Board, and the Circuit Court of Illinois, and have appeared before the Illinois Appellate and Supreme Courts.
Company Profile: Worsek & Vihon LLP, is a team of experienced attorneys singularly focused on real estate tax law. The firm is dedicated to minimizing property tax liabilities through strategic tax portfolio management, well-researched, creative appeal preparation and aggressive advocacy.
VILLAGE OF HUNTLEY
10987 Main Street
Huntley, IL 60142
P: 847.515.5268
Website: huntleyfirst.com, huntley.il.us
Key Contact: Melissa Stocker, Development Manager, mstocker@huntley.il.us
Services/Demographic Info: Huntley, a northwest suburban Illinois community of greater than 29,000 residents, is conveniently located at the crossroads of Interstate 90 and IL Route47. Proximity to the interstate and to international and cargo airports in Chicago and Rockford make Huntley an ideal location for businesses looking to escape the congestion of more populated areas while reaping the benefits of a Chicago market location. Village of Huntley staff provides comprehensive services including site selection assistance and demographic resources, visit huntleyfirst.com to start the search for your new home for business. Residential construction continues with three subdivisions actively building. Huntley is home for your business, and home to the right employees for your business.
Population In Primary Trade Area: 97,283
Incentives: TIF District, Fast Track permitting and development approval process CRE Activity: Huntley is home to leaders in business. Join Weber, Northwestern Medicine, Amazon and many others that chose Huntley as their home for business. Hampton Inn recently opened in Huntley. Amazon has begun operations in two Huntley facilities. E-Logistics firm headquarters are underway. Speculative development is underway and available near the tollway. Multiple retail strip centers are in the planning and construction phases. With land available for custom-tailored facilities, businesses seeking sites recognize Huntley as a prime location for operations.
Services Provided: Full line of Commercial, Business and Real Estate loans customized to your individual needs including: commercial and residential construction loans, commercial mortgages, equipment loans and working capital lines of credit. Company Profile: Marquette Bank started in Chicagoland in 1945 and is still locallyowned/operated. Expect quick decisions, competitive rates, easy application and personal service. Personal/business banking and lending, home mortgages, land trust services, estate planning, insurance services, wealth management and multifamily lending.
1000 N Water Street, Suite 1700
Milwaukee, WI 53202
P: 414.298.1000
Website: reinhartlaw.com
Key Contact: Joseph Shumow, Shareholder, jshumow@reinhartlaw.com
Services Provided: Reinhart is a full-service, business-oriented law firm that delivers innovative, value-added solutions for today’s most important real estate needs, including land use and zoning; tax incremental financing; tax credits; leasing; construction; and condemnation and eminent domain issues.
Company Profile: With the largest real estate practice in Wisconsin and offices throughout the Midwest and across the country, Reinhart’s attorneys offer clients customized real estate insight rooted in broad knowledge and deep experience to help you capitalize on opportunities no matter where you do business.
