However, the most recently inked lease, signed by Fibre-CraftMaterials Corp. for 169,800 sf, was far more substantial in sizethan the partnership was anticipating. "There has been a great dealof interest in the project because of the intrigue of a newproperty, but it has been somewhat slow on leasing front," BarryMissner, principal of the Missner Group, tells GlobeSt.com. "Butbecause of the size of the lease, the project is already half full.We were expecting by smaller tenant, and we were surprised when wegot a bigger user."

The reason, he found, was that the Niles industrial market lackscomparable inventory. "You don't have to lease the as much spacefor the same warehousing facility," he says, "and we believe we cansell that and some image. This building has image." For thebuilding's efficiency and image, users will dish out a 30% premiumin rent—a small price to pay for replacing the antiquated facilitythat formerly occupied the site, says Missner.

The building had been on the market for a couple years, andthrough price reduction it had become more attractive for reuse."Developers like us saw this like a plausible redevelopment," hesays. "Through the course of them being unsuccessful to sell, theywere willing to reduce purchase price." After buying the propertyfor $7 million, the company soon began demolition of the existing1950s warehouse and water tower.