Duke Begins Another Spec Development in I-55

Duke Realty currently owns and manages 3.5 million square feet in the I-55 submarket, which has tightened considerably.

CHICAGO—Duke Realty Corp. recently began construction of a 150,000-square-foot bulk warehouse in Romeoville in the I-55 submarket. The launch bolsters what has already been a remarkably strong year for new construction. The building, which Duke has decided to develop on a speculative basis, lies just off Taylor Rd. between Belmont Dr. and Paragon Dr. with access to I-55 from both the Weber Rd. and Rte. 30 interchanges.

Many observers now consider I-55 to be an infill market, and the tight conditions should ensure a long line of prospective tenants for any new class A product. The town of Romeoville, especially, has brought in a lot of industrial users. Its vacancy rate just fell to 4.0%, according to a new report on local market conditions by Colliers International. In 2009, that rate had reached a high of 23.9%.    

“Interest in the I-55 submarket has been strong since the first of the year, resulting in limited availability for companies looking to locate in this premier distribution hub,” says Ryan O’Leary, senior vice president of Duke Realty’s Chicago, Minneapolis and St. Louis operations. “With this new speculative building, we’ll be well-positioned to offer move-in ready, first-class space for clients with immediate needs in a location with superior highway access.”

Duke already owns and manages 3.5 million square feet in the submarket. It plans to deliver this building, which will feature 32′ clear height, 16 dock doors with expansion capabilities, two drive-in doors and 47.5′ x 50′ bay spacing, in June 2017. A 180-truck court will surround the building, along with 32 trailer parking spaces and 111 automobile parking spaces.

Terry Grapenthin and Jeff Galante with Lee & Associates represented the seller of the 9.19-acre parcel of land where Duke will construct the new building, while Duke was represented by Susan Bergdoll, vice president of leasing and development and Jason West and Sean Henrick with Cushman & Wakefield.