"We are seeing increased demand from the freight forwardingindustry in general, and the Chicago market specifically," says AMBProperty Corp. vice president of development James E. McGill."Additionally, freight forwarding customers tell us they areconcerned about the potential displacement due to the expansion ofO'Hare's south runway. With AMB Nicholas Logistics Center, we areable to supply a modern facility immediately adjacent to theairport on a site outside the airport's expansion boundaries."

O'Hare, being scrutinized by federal transportation officialsfor its dismal record of flight delays, is scheduled to undergo a$6-billion makeover that includes realigning its runways from acriss-cross pattern to an east-west scheme.

Company officials say the logistics center, which is scheduledto be completed early next year, could handle either a single useror multiple tenants. The Class 6(b) designation would allow them toreduce their property taxes by more than half over the next 10years.