Logistics Company Renews Chicago-Area Industrial Lease

LaSalle Investment Management has signed a 106,100-square-foot lease renewal at 2551-2561 Allan Drive, a 198,196-square-foot industrial building in Elk Grove Village, Ill., a Chicago suburb. Lee & Associates represented the tenant, Logisteed America Inc., while Colliers negotiated on behalf of the landlord.

LaSalle purchased the 8.9-acre property for $17.8 million in 2015 from the Florida State Board of Administration, CommercialEdge data shows. Dating back to 1985, the two-story, cross-dock industrial facility features 24-foot clear heights, five drive-in doors and 43 dock-high loading doors, as well as 130-foot truck courts and approximately 100 parking spaces.

The Allan Drive warehouse provides easy access to interstates 290 and 90. O’Hare International Airport is some 11 miles away, while downtown Chicago and Chicago Midway International Airport are within 26 miles.

Lee & Associates Principals Kenneth Franzese and John Cassidy led the team that represented the tenant. Colliers Principals and Executive Vice Presidents Jonathan Kohn and Christopher Volkert worked on behalf of the landlord.

Strong fundamentals for Chicago’s industrial sector

The industrial vacancy rate in Chicagoland was 4.9 percent as of October, 30 basis points higher than the national average, according to a recently published CommercialEdge report. However, the metro had the largest sales volume in the Midwest year-to-date through the first ten months of the year, totaling $1.63 billion.

In October, the market had roughly 18 million square feet under construction, the same source shows. Notable projects in the area include Seefried Properties’ 465,360-square-foot speculative industrial development in Elgin, Ill., that broke ground in July. The two-building campus is slated for completion in the third quarter of next year.

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