CHICAGO—McDonald's imminent decision to leave Oak Brook for downtown Chicago has many observers wondering what could fill such a big hole in the market, and whether that vacancy will imperil other development plans.

But Jim McDonald, vice president of development for Ryan Companies US, Inc., which has an ambitious vision for Oak Brook, tells GlobeSt.com that a lot of users won't find the 1980s-era campus very enticing. In fact, since so much suburban office product was built decades ago, there is a robust demand for customized spaces that provide the open-floor plans and amenities that tenants now consider essential.

“It could be a good mixed-use destination,” he says of the sprawling, low-rise McDonald's campus. And although it is possible that some large tenant will find the bucolic setting attractive and agree to occupy the property, “that market is somewhat limited. Buildings of that size and age are becoming obsolete in the new office market.”

As reported in GlobeSt.com, the Naperville, IL-based Ryan recently acquired 11 acres of land at the I-88/I-294 interchange in Oak Brook, just northeast of the McDonald's campus, where it plans to develop a combined office/medical campus. Company officials said the class A development would likely to have a construction volume exceeding $70 million.

McDonald understands why municipal officials worry about the exit of a global company like McDonald's, but maintains that “the brand of Oak Brook is phenomenal.” Even if certain firms decide a downtown Chicago location will help recruit and retain millennial workers, others will want access to the affluent and highly-educated workforce that surrounds Oak Brook. Furthermore, “you are a 20- or 30-minute drive from anywhere, including downtown Chicago.”

The first phase of Ryan's new complex will be a build-to-suit, probably for a single tenant, of between 80,000 square feet and 120,000 square feet. “Our project will be one of the few in the submarket that will have completely open floor plates,” says McDonald. Old-school buildings typically have a core of elevators and private offices that line the perimeter, but Ryan will develop buildings with fully offset elevator cores, allowing the tenant tremendous flexibility in choosing an interior.

In addition to owning the property, Ryan also will provide development, design-build and real estate management services. NAI Hiffman will serve as broker, and Wright Heerema Architects will provide architectural services.

McDonald hopes to break ground on this first building in the spring of 2017. It is at least possible that more than one tenant will occupy it, however, “we are already talking to users that want their own building.”

Demand for such product may be intense because Oak Brook has very little open land available for new development, he adds. Any company that wants a truly advanced building somewhere else in the submarket will probably have to demolish an existing structure. “That's what makes this site so unique; there is really nothing else out there.”

Instant Insights /

McDonald's Move Does Not Worry Oak Brook Developer

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