Suburban Chicago’s largest submarket experienced a small increase in demand for the second consecutive quarter. Vacancy rates fell slightly in the fourth quarter but remain near the record highs reached at the end of 2003. With no new deliveries planned in the near future, MB Real Estate expects demand to gain momentum after job growth is sustained.
Several large lease transactions were signed in the East-West corridor during the fourth quarter. Health Care Service Corporation extended their lease and will expand at 120 West 31st Street in Downers Grove to occupy a total of 177,000 square feet. Technology firm TriZetto signed a 40,748 square foot lease at 1240 East Diehl Road in Naperville. The new office is slightly smaller than what they currently occupy at 500 Technology Drive. SunCoke Energy announced that they are relocating their headquarters from Knoxville, Tennessee to 40,000 square feet at the Arboretum Lakes complex in Lisle.
Navistar International closed on the purchase of the 1.2 million square foot campus at 2601-2701 Lucent Lane in Lisle for $33 million, or $27 per square foot. As a result Navistar’s former office, a roughly 250,000 square foot block at 4201 Winfield Road in Warrenville, is now available for sublease through January 2016. Wanxiang America purchased the vacant, 329,770 square foot building at 1200 Warrenville Road in Warrenville for $9.4 million, or $29 per square foot. The group plans to invest $47 million to renovate the four-story building.
The East-West submarket encompasses Cook, DuPage, Kane, Kendall, and Will Counties, with major cities including Downers Grove, Lisle, Naperville, and Oak Brook.
For MB Real Estate's Outlook on the West Loop submarket and the rest of the Chicago Market please reference our Submarket Snapshots, our companion piece to the MB Real Estate Chicago Market Overview.
No comments:
Post a Comment