A six-acre industrial site on Chicago’s South Side hit the market as demand surges for warehouses.
The site at 1111 West 35th Street has a 11-story, 869,660-square-foot industrial building with office space, according to CBRE’s listing, and it’s occupied by electrical device manufacturer Tripp Lite. The property is within 10 miles from I-55 and I-90, the region’s main logistics and distribution corridors. CBRE declined to comment on the expected sale price or buyer interest.
(Source: CBRE Deal Flow)
“The City South submarket witnessed heightened levels of net absorption as spaces became occupied,” CBRE’s marketing flier said. “The area’s appeal includes it being a gateway to Northwest Indiana as well as having prime real estate along major interstates such as I-55 and I-90/94.”
Demand for warehouses and distribution centers is high on Chicago’s South Side, which has 145 million square feet of industrial inventory, the city’s largest. The vacancy rate in the area was 2 percent in the fourth quarter, lower than the metropolitan area’s 2.5 percent, according to CBRE. Of the 25.2 million square feet of industrial construction, 893,400 square feet are under construction on the South Side.
One of the largest industrial leases last year was on the South Side, Industrial Realty Group’s lease to the city of an extension at 900 East 103rd Street. The 427,000-square-foot lease consists of 225,000 square feet of garage and warehouse space and seven vacant acres used by the city.
Central Steel & Wire leased a 897,000-square-foot build-to-suit construction in University Park in the fourth quarter, the city’s largest deal in the three-month period. Diageo North America’s 800,000-square-foot lease renewal in Bolingbrook, about 30 miles southwest of Chicago, ranked second.