NAI Hiffman represents 1931 Norman Drive in renewal with Briggs Healthcare

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NAI Hiffman represented ownership in its long-term lease renewal with Briggs Healthcare for 147,936 square feet of industrial space at 1931 Norman Drive in Waukegan, Illinois. Briggs has occupied the building for 10 years, utilizing the warehouse for distribution of its medical products. The class A property, located at 1931 Norman Drive, has 36’ clear ceiling height, 7 exterior docks, and is managed by NAI Hiffman.
 
Mark Moran and Steve Connolly, executive vice presidents with NAI Hiffman’s industrial services group, represented ownership in the transaction. Jack Rosenberg and Fred Regnery, with Colliers International, represented Briggs Healthcare

Source: Daily Herald Business Ledger
Mentioned in RE Journals

 

Market in Motion: North Suburban Office Market

NAI Hiffman presents its latest Market in Motion video, providing a unique perspective of the commercial real estate market by putting you in the passenger seat with one of our local experts.

Join Michael Flynn, NAI Hiffman executive vice president, as he discusses office real estate market conditions in Chicago's North suburban submarket. Flynn provides particular insight into well-capitalized ownership and their impact on the market's recovery, especially within the region's "micro-markets".

For further information regarding the North Suburban office market, please contact:
Michael Flynn | Executive Vice President, Office Services | 630 691 0600

For further information regarding NAI Hiffman's brokerage services, please contact:
John Picchiotti | Chief Operating Officer, Brokerage | 630 691 0608

Connolly & Moran lease 365 Crossing Road, Bolingbrook to 100%

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NAI Hiffman recently represented ownership of 365 Crossing Road in Bolingbrook in its lease expansion with RockTenn for 97,077 square feet of industrial space.

RockTenn, a leading manufacturer of corrugated and consumer packaging, originally occupied 162,667 square feet in the building; with the new expansion, RockTenn is now occupying the entire 259,744-square-foot building. The building has 30’ clear ceiling height, 22 exterior docks, is in a prime I-55 corridor location, and is managed by NAI Hiffman.

Steve Connolly and Mark Moran, executive vice presidents with NAI Hiffman’s industrial services group, represented Sun Life Assurance Company of Canada in the transaction. Douglas Biggs, Jack Rosenberg, and Fred Regnery of Colliers represented RockTenn. 

Source: RE Journals
Mentioned in Bisnow
Mentioned in The Daily Herald Business Ledger

Aubrey Van Reken represents DuPage Senior Citizens Council in new office lease

Aubrey Van Reken, vice president with NAI Hiffman’s office services group, recently represented DuPage Senior Citizens Council (DSCC) in its new long-term office lease for 5,620 square feet in Lombard, Illinois. The not-for-profit firm will be relocating from 1919 South Highland Avenue in Lombard to Oak Creek Center, a single-story office building at located at 1990 Springer Drive. Aubrey began working with DSCC in 2013 in its search for a larger corporate headquarters. 

Source: RE Journals
Also mentioned in Bisnow
Also mentioned in the Daily Herald Business Ledger
Also mentioned in RE Business Online

Industrial strength: Latest numbers show a return to speculative development

Chris Gary

Chris Gary

Strengthening conditions in the industrial market have brought a return to speculative development. The return of spec is something the industrial real estate community—brokers and developers alike—all postulated and predicted, and now it has become reality. 

Currently, according to statistics developed by Colliers International for the Association of Industrial Real Estate Brokers (AIRE), in the Chicago metropolitan area there are 27 projects totaling 6.3 million square feet of construction underway. 

This represents the greatest amount of speculative construction since before the Great Recession.

Yet of the space being developed, only 11 percent is pre-leased, leaving some 5.6 million square feet to be absorbed. So the question is—a year or more into the recovery—how is the return of spec doing?

The general consensus among AIRE board members, individuals who are experts in industrial real estate, is the current statistics are more reflective of a snapshot of a specific window in time. They don’t mandate cause for concern that, overall, the real estate market has fallen out of recovery mode and that businesses are not as optimistic as most have indicated. 

“It is fact, 5.6 million square feet is a significant amount,” said AIRE board member and Podolsky|Circle CORFAC International Principal Adam Tarantur. “But think of the years when there was no new development or only negligible amounts.”

During that time, Tarantur suggests, businesses that use industrial space did more with less space, delaying expansion decisions until the timing would be more appropriate. That time is now, and developers are responding with increased development to meet their needs.

Robin Stolberg, an AIRE Board Member and a Managing Director with Jones Lang LaSalle, said, “It (the lack right now of immediate pre-leasing) is not of concern. You need to look at supply and demand factors in each specific market area.”

AIRE board members also agreed that presently there is great discipline being exhibited by developers and investors/capital sources.

“Developers are not developing ‘commodity’ buildings,” Tarantur said. “They are developing properties where there is a constrained supply. 
While there is a lot of product going vertical, no one should think that developers abandoned the cautious and pragmatic modes necessary to weather a recession and emerge strong.”

The Immediate Past President of AIRE, Tom Boyle a Principal with Transwestern, said, “The development and investment communities have been very responsible. Their investments and developments are only in markets that will be primary growth areas.”

He said spec development is predominant in markets and locations where there is low vacancy and barriers to access are present. Boyle noted that while there have been many projects announced in the I-55 Corridor area, that is a market where there is great demand and a lot of space is absorbed each year.

Stolberg pointed to other markets, including the north markets, from northern Cook County all the way across the border into Kenosha County, where the forces of supply and demand are increasing the amount of development and ultimately will lead to leasing of these spaces.

What is telling about the statistics produced by Colliers for AIRE is that this increased inventory of speculative construction means greater options for users. While many buildings are suited for large users, those requiring spaces greater than 100,000 square feet, others are filling a niche for smaller space users. Those buildings may total 150,000 square feet or less, but are divisible perhaps as low as 10-25,000 square feet of space.

Of the 27 projects currently in varying degree of completion, 14 of the buildings offer a total building footprint of approximately 150,000 square feet. The remaining 13 buildings range from 180,000 to 672,000 square feet. 

Tarantur and many of his AIRE counterparts are bullish on the market, expecting a strong lease-up market. “While many of these buildings are going up without any leasing in place, by the time construction is completed, they’ll be leased.”

Boyle agreed in characterizing the market as strong, but was a little bit more cautious and said, “In most submarkets, absorption of space will be rapid, within 6-9 months of buildings being completed. Again,” Boyle added, “it’s all about supply and demand. In those markets where spec construction is occurring, there is a lack of competitive product—buildings that offer newer features and are priced competitively.”

According to Stolberg, users in the market are starting to feel upward pressure on overall rental rate structures. Generally, these upward pressures first are reducing the concession packages and tenant improvement allowances. He said eventually this could lead to increased rental rates.

“This has less to do with the state of the spec construction market and more to do with the overall tightening of space across many suburban markets,” Stolberg said.

Source: Daily Herald Business Ledger