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BOLINGBROOK, IL-Ozburn-Hessey Logistics has subleased 106,000 square feet of warehouse space from bicycle maker Raleigh USA. The logistics firm joins two other tenants in the fully-occupied 220,000-square-foot building at 555 Remington Blvd. Kent, WA-based Raleigh no longer needed the space due to a recent outsourcing of its distribution operations.

“It was the right size space and we needed it very quickly,” says J.D. Salazar, managing principal with Champion Realty Advisors LLC, which represented Raleigh. “We needed to be in the space within 15 days, the space was vacant and so it fit the criteria. Raleigh committed to getting them moved in within that period, so it was a matter of good timing.”

Randy Wolcott, SVP and founder of Brentwood, TN-based ProVenture Commercial Real Estate, represented OHL in the transaction. The sublease rate on the deal was around $4 per square foot, gross, Salazar says. Constructed in the late-’90s, the building is owned and managed by Reef Real Estate Investment Co.

The building is located in the Interstate 55 corridor, where occupancy rates are around 87%, with asking lease rates that range $4 and $6 per square foot net, according to Cushman & Wakefield’s year-end industrial market report.

“This type of product is actually doing fairly well in the Interstate 55 corridor,” Salazar tells GlobeSt.com. “Although it has a high, double-digit vacancy rate, spaces less than 150,000 square feet in size are actually doing pretty well and lease rates are holding up. Buildings over 150,000 square feet are where the downward pressure of rents exists.”

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