Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

WOOD DALE, IL-VideoJet Technologies Inc. has extended its lease by 10 years at its 250,000-sf flex industrial building in Wood Dale, at 1500 Mittel Blvd. Wells Real Estate Investment Trust owns the building, one of the dozen properties owned in the Chicago area by the Norcross, GA-based REIT.

VideoJet, a manufacturer of coding, printing and laser-making products, is a subsidiary of Danaher Corp. The company had five years left on its lease, but was able to lock up a good extension rate until 2021, says Bo Reddic, managing director of asset management for Wells. He would not divulge VideoJet’s lease rate, but says It’s hard to find a comparable.

“Because 100,000 sf of the property is office space, it’s sort of a unique, hybrid property,” Reddic tells GlobeSt.com. The deal included concessions for improvements to the 15-year-old building, but he says he doesn’t know at this point what will be renovated. Wells purchased the property in 1991.

He says the lease rate is close to the comparables for the O’Hare market, which he says averages in the mid-teens triple net for the office market and $3 to $4 per sf, triple net, for industrial property. According to a Grubb & Ellis report, the lease rate for industrial property hovers at just more than $4.20 per sf.

Wells owns mostly office property in Chicago, including 35 W. Wacker and the Aon Center Downtown. “We’ve seen some improvement in the office market in the suburbs, and modest improvement Downtown. We want to continue our market commitment,” Reddic says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.