Spec Construction Projects Continuing in Chicago
Even after years of record-breaking absorption, demand remains robust.
CHICAGO—Colliers International just tagged Chicago as one of the nation’s top five core markets, a set of metro areas leading the way with robust absorption and development, along with record low vacancy rates and record high rental rates.
That level of activity has boosted the confidence of local developers.
Chicago-based HSA Commercial Real Estate and New York-based Clarion Partners LLC just started construction on Heartland Corporate Center, a state-of-the-art 757,880-square-foot warehouse located on a 46-acre land site near the I-55 and I-80 interchange in Shorewood, IL. The partners are developing the new distribution center, which will feature 36’ clear heights, 108 truck docks and 240 parking spaces, on a speculative basis and plan to have it ready by early 2019.
“Despite the unprecedented growth and development in the I-55 corridor over the last couple years, absorption and demand have remained extremely strong, which speaks to the strategic value of the market for large warehousing and logistics firms,” says Robert Smietana, vice chairman and chief executive officer with HSA. “We feel very confident about a quick lease-up based on the interest we have experienced thus far for Heartland Corporate Center, which is the single largest warehouse building we have developed in our company’s history.”
The 46-acre development site, which the village of Shorewood recently annexed as part of the project’s entitlement process, is accessible and visible from both I-55 and I-80. Given the area’s vital importance as a national logistics and distribution hub, the I-55 industrial real estate submarket has experienced the largest number of new warehouse developments in the Chicagoland area.
Rosemont, IL-based Meridian Design Build is the general contractor for the development, and David Bercu and Matthew Stauber of Colliers are responsible for project leasing.