Brown Completes DuPage County industrial deals
April 2023 — The DuPage County industrial market continues to attract investors and tenants looking for lower taxes (than Cook County) and access to O’Hare International Airport and surrounding transportation routes. As noted in this Illinois Real Estate Journals story, Brown Commercial Group Partner Mike Antonelli, SIOR, and Broker Matt Hanson represented the sellers in two recent transactions. Partner Trinity Scurto, SIOR, represented the buyers.
The industrial sales transactions totaled 48,171 square feet and illustrate the continued demand by investors for well-located buildings with modern features and strong leasing fundamentals. The DuPage County industrial buildings are at 2211-2239 Curtiss St. in Downers Grove, Illinois (25,575-SF) and 330 W. Fay Ave. in Addison, Illinois (22,596-SF). The team represented Bilmar Investments LLC in selling the Downers Grove building. The seller completed extensive renovations and a strategic leasing program over the past several years to increase occupancy.
Antonelli and Hanson represented 330 Fay, LLC in selling the Addison building to Absolute Electronics, which is expanding from a 7,200-square-foot space in Elk Grove Village, Illinois, to move into half of the Addison, Illinois, building. The other half of the building is leased to Air Gas, a long-term tenant in the building. The seller was a tenant in that building and had exercised its option to purchase the building in 2019 in the middle of their lease term.
DuPage County Industrial Rent Growth
According to Brown Commercial Group’s Q1 2023 Outlook, long-term industrial rent growth in both the North DuPage submarket and the Chicago metro at large have been sensational. In the past 10 years, rents in the North DuPage submarket have cumulatively risen by 61.5%, a performance essentially matched for the broader market. Rent growth over the past 12 months reached:
- 8.9% in Central Kane/DuPage
- 8.8% in O’Hare,
- 8.6% in North Kane/I-90
- 8.4% in the Western Suburbs
- 8.3% in South Lake County and
- 8.1% in North Cook.
