Demand Picks Up in the I-55 Corridor
Throughout 2017 and 2018, industrial activity in the I-55 corridor was relatively flat. The situation is much different so far this year, with nearly 2 million square feet of absorption in the submarket last quarter alone—the greatest quarterly demand in more than three years.
What’s leading to this renewed interest? The primary drivers are twofold: existing users that have gone into expansion mode, as well as new, large users coming into the submarket in search of internet fulfillment centers, food-grade warehouses and third party logistics space.
“The I-55 corridor has been a hotbed for activity and demand during the first half of 2019,” said Jim Estus, principal, Chicago, of Colliers International. “But with land constraints limiting how much further the submarket can grow and the dramatic increase in construction costs, a lot of tenants witnessing all this activity move quickly.”
Case in point: Colliers is handling the leasing for the Fountain Square Commerce Center in Bolingbrook, Illinois. Bridge Development Partners acquired the site for more than $73 million last November and has since tapped PREMIER Design + Build Group, Cornerstone Architects, SPACECO and Structural Resources, Inc. to design and build out a 219,000-square-foot speculative warehouse on the last remaining parcel on the property.