Brown completes O’Hare industrial market sale
Oct. 29, 2024 — As highlighted in a recent issue of Bisnow’s Chicago Deal Sheet, Brown Commercial Vice President Mason Hezner completed a 20,000-square-foot transaction in Chicago’s O’Hare industrial market. He represented AES USA Corp. in buying a industrial warehouse at 989 Pauly Drive in Elk Grove Village for $1.9M. The seller was Rumco Acquisition Corp. The Deal Sheet covers key commercial real estate transactions in the Chicago market.
The buyer, a distributor of flexible conduit systems for heavy industrial automotive markets, is moving from a 10,000-square-foot space that is also in Elk Grove Village, IL. “The O’Hare industrial market remains a strong draw for growing businesses looking for a central location with easy access to the airport and surrounding transportation routes,” said Hezner in a news release. “There continues to be strong demand for small to mid-sized buildings that allow companies to expand while staying close to their distribution networks.”
According to CoStar research, many of the industrial building sales in the O’Hare submarket over the past 12 months were in the range of 28,000 to 85,000 square feet, as demand for small to mid-sized buildings continues to lead sales activity. The O’Hare submarket has a 4.3% vacancy rate, more than 100 basis points lower than the vacancy rate for the overall Chicago market. Asking rents in the submarket are approximately 15% higher than the Chicago average and recorded an annual growth rate of 4.5%.
The overall Chicago industrial submarket continues to show resilience and outperform many other national markets. Tenant demand remains resilient, especially for logistics space, which accounts for about 90% of the leasing activity.