Peerless Takes Flex Building in China Exit

Peerless' move follows a decision by the company last year to return all manufacturing jobs to the US after four years of having 30% of the firm's products made in China. The company is also consolidating its workforce from two smaller buildings in Melrose Park, IL. The state provided a $2.9 million investment package to leverage nearly $17.5 million in private investment to facilitate the move. "We were considering moving to Indiana, which was also offering us an incentive package," said Michael Campagna, president and COO, "or to Mexico, where we have a small warehouse and sales office. But our roots in Illinois date back almost 70 years, and we wanted to stay here if it was economically feasible."

The company plans to add 22,000 square feet of office space shortly after occupancy. The site is expandable to 500,000 square feet, a move the company also will take, says Jason West with Cushman & Wakefield. He was joined by Sean Henrick and Michael Magliano in representing Northern Builders Inc., which owns the facility. Northern developed the building at 2300 White Oak Circle, on 22 acres, for 3M in 1997. Larry Goldwasser and Jay Maher with NAI Hiffman Industrial Services Group represented Peerless in the lease transaction. West says he cannot provide the exact lease rate, but his company's promotional brochure lists an asking rate of $355 per square foot, net.

West says the local Interstate 88 market is soft, at 13.8% vacant in a 82 million square foot submarket. However, there are some reasons to think positive, he says. "They recently put in an Eola Road interchange, that will definitely help this location by relieving traffic congestion at Route 59 and open up some of the buildings along Eola.