LFI, Principle Complete 431,000-SF Spec Building

"Monee is a very up-and-coming area, and the particular location where we built this is very close to Interstate 57," Tom Leathem, project manager with Principle, tells GlobeSt.com. "Given the great access for companies to Interstate 57, this site lends itself very nicely to logistical capabilities for shipping and receiving companies. It's in a good location in a TIF district, so there are tax incentives for locating in that building."

The park also offers a 600,000-square-foot industrial facility, originally constructed by LFI in 2005 as a build-to-suit. LFI has since sold the property, which is currently fully occupied by Michelin Tire.

The Mokena, IL-based developer has put future spec facility development in the park on hold for the time being, but continues to pursue build-to-suit opportunities. Spaces ranging from 50,000 to 1.2 million square feet are being marketed for distribution, manufacturing, office and retail uses. The park is expected to house 7.5 million square feet of industrial and commercial buildings when completed.

LFI began construction on the most recent spec building in October 2007, nearly a year before the economy took a serious turn for the worse. Since then, Leathem says the building has seen a lot of activity, but no leases. The property sits on 24 acres, and offers 32-foot clear ceilings, 10,000 square feet of office with room for expansion, 40 docks expandable to 84, and 46 trailer parking stalls expandable to 92.

"The building has a lot of flexibility to accommodate tenants from a lot of different industries," he says. "Because this industrial park is still being developed, if there is a company interested in future expansion, there is land available to accommodate those needs." Of additional appeal to prospective tenants, the state is in the process of rebuilding the interchange nearest the park at Monee-Manhattan Road and Interstate 57.

The park is located in the south suburban submarket, where asking lease rates range from $3 to $5 per square foot net and occupancy rates are around 88%, according to Cushman & Wakefield's recent market report.

"It's doing very good, and one of the benefits to the location is that there's still a lot of open ground and new development going on there," he says. "Because of that, there's better land and construction values, and that obviously carries over to better lease rates. It's potentially more advantageous for companies to look at buildings in this area because they can offer better lease rates than other areas."