CHICAGO—Growing demand has pushed up occupancy and rental rates in industrial buildings across the metro area, and the I-55 corridor has become one of the most active submarkets. The Opus Group just became the latest developer to take advantage of this strengthening market by launching the construction of two speculative industrial buildings in Paragon Business Park, located off Taylor Rd. in suburban Romeoville. Upon completion, the project will add about 255,000-square-feet of new class A industrial space to the submarket with an additional 7-acre site that could accommodate build-to-suits of up to 115,000-square-feet. Opus purchased the 22-acre site from First American Properties and will begin construction this fall.
“Low vacancy rates and the lack of available stand-alone 100,000- to 200,000-square-foot buildings reinforce that there is demand for this type and size of space in this location, especially for users looking to purchase their own facility,” said Matt Kurucz, real estate manager for Opus Development Company, LLC, in a prepared statement. He was not available by press time, but next week GlobeSt.com will provide additional comment on the project and the prospects for industrial development in the area. “We're excited to launch this project and meet the needs of prospective tenants and user-buyers within the I-55 corridor.”
Opus will build two speculative buildings with about 133,800-square-feet and 121,200-square-feet, respectively, and complete the projects in the summer of 2015. The buildings will have 30' clear heights and meet the needs of either single- or multi-tenant occupancy.
This is not the only speculative project underway in the neighborhood. As reported in GlobeSt.com, rising rental rates for similar industrial properties helped Molto Properties launch an 189,700-square-foot spec project in Romeoville. “Buildings of this size are now renting for high $3-per-square-foot to a little more than $4,” Todd Naccarato, founder and senior principal of Molto, told GlobeSt.com. “Eighteen months ago, rates were stuck at $3.25 to $3.35.”
Other developers finished up significant projects in the second quarter. IDI, for example, enclosed a 602,600-square-foot spec bulk warehouse/distribution building at 700 S. Weber Rd. in Bolingbrook, according to Colliers' second quarter report on industrial property. And Conor Commercial Real Estate completed a 347,400-square-foot build-to-suit for Orbus Exhibit & Display Group at Union Pointe Business Park in Woodridge.
“Construction deliveries to date reached 1.8-million-square-feet, which is the highest annual total since 2008 when 2.5-million-square-feet of new projects were constructed,” Colliers found.
Opus Development Company, LLC is the owner and developer of the new Romeoville project. Opus Design Build, LLC is the design-builder and Opus AE Group, LLC is the architect and structural engineer of record.
Terry Grapenthin and Jeff Galante of Lee & Associates represented First American Properties in this transaction. Opus was represented by Jason West and Sean Henrick of Cushman & Wakefield.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
