LAKE FOREST, IL-Omron Healthcare has leased 23,404 square feet at the 100,000-square-foot West Lake at Conway office building here. Duke Realty Corp. owns the building, which is now 93% leased.
The Far North Chicago submarket has not been hit with as much vacancy as the rest of the region due to the concentration of health care firms, says Steve Schnur, SVP with Duke’s Chicago office. Though the region had about 300,000 square feet of negative net absorption in the third quarter, for example, the vacancy rate of about 22% is the lowest in the Chicago suburbs. “The North market has held up better than any other, though every industry has felt the hit, even medical and pharmaceutical,” Schnur says.
Omron is currently located in Bannockburn, IL and wanted to relocate. The medical products distributor will take most of the third floor. Though he wouldn’t comment on this specific deal, Schnur says the lease is close to the $17 net asking rate.
The company owns another office building in Conway Park, a 200,000-square-foot office called One Conway. Other tenants in the park include Hospira and Abbott.
Schnur tells GlobeSt.com that industrial property should fare better than office property in the suburbs this year. “It’s going to be tough on office this year. There’s been an uptick in demand, but not enough that there can be improvement in fundamentals such as rents and concessions. We’re going to stay in the 21% to 25% vacancy this year,” he says.
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