Brown Commercial completes industrial sales
March 21, 2024–Small to mid-sized industrial space are in short supply in the Chicago market, but Brown Commercial is helping businesses find space to purchase for expansion. Brown Commercial Group negotiated two industrial sales through its business network, helping two growing companies expand in the market.
Broker Pat Crowley found a 12,000-square-foot off-market property at 1012-1030 Morse Ave. in Schaumburg and represented the buyer and seller in the transaction. The property was purchased as a value-add transaction that will allow the buyer to increase the property’s value over time by making renovations.
Crowley also worked with Aqualab Water Treatment, Inc. in buying an 8,000-square-foot industrial building at 2200 Foster Ave. in Wheeling, IL. He also represented the seller, a private family investment partnership.
“Industrial sales are challenging right now and businesses are facing many challenges finding space under 50,000 square feet,” said Crowley. “Working through our network of suburban business owners, I was able to secure these spaces that will allow the new owners to expand in the market.”
These transactions illustrate an ongoing concern among many small to mid-sized businesses. How can they find industrial space for expansion? The shortage of space under 50,000 square feet is due in part to a run-on space in recent years. Developers and investors have been buying older industrial buildings or assembling several lots and building larger, modern facility. Tenants are then displaced during the construction process and sometimes forced to move to outlying areas, said Crowley.
The lack of smaller space throughout the Chicago market is particularly problematic for manufacturing businesses or companies that have specialized equipment and space needs. “Businesses that have invested considerable capital into specialized equipment and are reliant on being close to their labor pool and customer base are finding it more challenging in this environment,” said Crowley. “It’s not as easy to pick up and move when you have significant inventory and equipment that was specially designed for your business and your existing space.
See the IL Real Estate Journal for more.
