NAPERVILLE, IL-With tenants recently moving into buildingsfinished this year by Ryan Cos., officials from the local office ofthe firm said that the Chicago suburbs are likely done seeing newconstruction for a few years, except for very few build-to-suitprojects. Tenants Cisco Systems and Delta Dental are moving intotwo Chicagoland properties built by Ryan, both which were plannedbefore the major downturn in 2009.


Cisco Systems is moving into about 80,000 square feet in the new120,000-square-foot Rosemont Corporate Center in Rosemont, IL,where Ryan and the Harp Group own the office. Delta Dental ofIllinois contracted Ryan for a build-to-suit at 111 Shuman Blvd. inNaperville, where the insurer will occupy 65,000 square feet of the85,000-square-foot building. These buildings represent the firstnew construction in their respective markets in the past twoyears.


Tim Hennelly from Ryan tells that likely the onlynew development in the struggling Chicago suburban office marketwill be build-to-suit projects. “There won’t be any more of theRosemont center buildings, and there won’t be any speculativebuilding in the suburbs for at least five years, I think,” he says.The overall suburban Chicago office vacancy rate rose in the firstquarter to 24.8% according to a Grubb & Ellis report, withClass B property vacancy at almost 30%.


The only new development activity has been a boom in medicaloffice projects – but not from the typical customers. Ryan isbreaking ground in southern Wisconsin this summer on a few officebuildings in the 100,000-square-foot range for local hospitals. “Ithink that’s where medical office is going, it’s going to be leasedentirely by hospital customers. A lot of buildings went up hopingthat they could get a doctor group, but these deals are verydifficult to put together, and almost impossible to finance. Plus,what I gather from the new health care reform, local doctors aregravitating back toward being with a system, instead of gatheringin a group for a new office building,” Hennelly says.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.