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.

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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.

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Tim Hennelly from Ryan tells GlobeSt.com 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%.

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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.

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