NAPERVILLE, IL-Transwestern recently signed five leases ofalmost 28,000 square feet at the Naperville Corporate Centercomplex here. The three-building, 420,000-square-foot complex is inthe East-West Corridor, which is experiencing almost 25%vacancy.


The new tenants include Atwell LLC (8,738 square feet), TataConsulting (5,364 square feet), Keough & Moody (4,834 squarefeet), Medical Consultants Network (2,457 square feet) and iGateGlobal (2,372 square feet). Fred Ishler, Joe Stevens, Dan Svachulaand Zach Fox represented Transwestern in the leases. Asking ratesat the complex run about $20.50 per square foot.


Ishler tells that the suburban Chicago market isstill quite soft. However, even though statistics haven’t improved,the mindset of the tenants has slightly shifted, he says. “There’snow a general expectation among tenants that they are maybe notgoing to get more favorable deals that are out there right now,” hesays. “Six-seven months ago, and in 2009, I think tenants thoughtthings were going to get a lot worse. I think there’s now arealization that economics have bottomed out in the market, andthey should get deals done now rather than waiting.”


Also, having about a quarter of all space vacant is only anumber, and doesn’t show what’s actually out there available,Ishler says. “You’ve got phantom buildings, especially in theNorthwest market, where there may be vacancies but owners justdon’t have the money to even pay for deal costs, rent abatements orimprovements. The space may be vacant, but the owner isn’t in aposition to even do a deal,” he says. “I don’t see the economicsgetting worse. I think we’re going to bounce around the bottom forsome time, but then the market will turn up eventually.”

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.