LOMBARD, IL-Health Care Service Corp. subsidiary Dental Network of America has agreed to an 11-year lease for 58,000 square feet at an office here at 701 E. 22nd St. The growing company is expanding from its current 28,000-square-foot lease at Two TransAm Plaza in Oakbrook Terrace, IL.
The move will put the company into a more manageable space all on one floor, says Scott Ohlander with Jones Lang LaSalle. He and Eric Kunkel represented the tenant in the lease. The tenant is a dental insurance third-party administrator and network lease administrator to more than seven million members.
“At their current site they are split up on two different floors, and no room for growth,” he tells GlobeSt.com. “They had a variety of space options, but this building was able to go below market rent and above market on the tenant package.”
This lease puts the four story, 173,000-square-foot 701 E. 22nd building at 100% leased. The company is moving into space vacated by General Electric, which moved with other GE divisions out to Westbrook Corporate Center in Westchester.
Ohlander would not comment on the lease rate. A village advertisement lists the rate at $22.50 per square foot.
Both Lombard and Oakbrook Terrace are in Chicago’s East-West Corridor suburban market. Leasing in the suburbs is still slow, but starting to pick up, Ohlander says. “We’re noticing tenant activity, there’s been more tours and interest level. Tenants are finally dipping their feet in the water.” Vacancy rates run between 23% to 25.7% in the corridor, according to a second quarter report by Grubb & Ellis.
The Windsor Realty Fund IV is the owner of the building. Jeff Shay and Steve Flachbart with JLL represented the fund in the transaction.
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