CHICAGO—The industrial submarket around I-55 in the southwestsuburbs is tightening up as local companies see increased business and respond bytaking up more space. And Mondi USA, aninternational packaging and paper company, just became the latestindustrial user in the region to expand. It has signed a leaseextension and expansion at 1140 Arbor Dr. in suburban Romeoville,where it had occupied about 120,000-square-feet. Starting in 2015,the company will move into space currently used by another tenant,and occupy the entire 171,812-square-foot building.

Founded in 1967, Mondi has locations in 30 countries and employsover 24,000 people. It has several facilities in the US includingthe Romeoville plant, which opened in 2000, serving the NorthAmerican market. Company officials report that strong growth hasresulted in increased workloads and hiring and made it imperativeto expand. And in May 2013, Mondi engaged DTZ associate vicepresident Robert Tamillo, and DTZ senior vicepresident Anthony Burns of the DTZ Chicagoindustrial team to assist with an expansion.

Mondi and DTZ eventually decided that a complete move of theoperation was out of the question due to cost concerns. Tamillo andBurns then negotiated an agreement with ChuckCanale and Jim Estus of ColliersInternational, who represented the landlordLaSalle Investment Management, that allowed Mondito expand nearby into another facility short-term and then moveback into 1140 Arbor when the adjacent tenant's lease expires in2015. Additional details of the agreement were not released and DTZdid not return a call seeking more comment.