WOOD DALE, IL-VideoJet Technologies Inc. has extended its lease by 10 years at its 250,000-sf flex industrial building in Wood Dale, at 1500 Mittel Blvd. Wells Real Estate Investment Trust owns the building, one of the dozen properties owned in the Chicago area by the Norcross, GA-based REIT.
VideoJet, a manufacturer of coding, printing and laser-making products, is a subsidiary of Danaher Corp. The company had five years left on its lease, but was able to lock up a good extension rate until 2021, says Bo Reddic, managing director of asset management for Wells. He would not divulge VideoJet's lease rate, but says It's hard to find a comparable.
"Because 100,000 sf of the property is office space, it's sort of a unique, hybrid property," Reddic tells GlobeSt.com. The deal included concessions for improvements to the 15-year-old building, but he says he doesn't know at this point what will be renovated. Wells purchased the property in 1991.
He says the lease rate is close to the comparables for the O'Hare market, which he says averages in the mid-teens triple net for the office market and $3 to $4 per sf, triple net, for industrial property. According to a Grubb & Ellis report, the lease rate for industrial property hovers at just more than $4.20 per sf.
Wells owns mostly office property in Chicago, including 35 W. Wacker and the Aon Center Downtown. "We've seen some improvement in the office market in the suburbs, and modest improvement Downtown. We want to continue our market commitment," Reddic says.
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