Growing business buys O’Hare industrial building
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February 13, 2024 — Industrial occupiers are still seeing limited availability of space in some submarkets, as demonstrated with this recent O’Hare industrial building sale that attracted multiple offers. The building at 160 Scott St. in Elk Grove Village, IL was originally marketed for lease, but was sold to a growing business. As noted in this Bisnow Chicago Deal Sheet story, Brown Commercial Group represented both sides of the transaction.
GP Glass Company emerged as the winner of the O’Hare industrial building sale, with the guidance of Vice President of Sales Mason Hezner. Broker Candace Scurto represented the seller, a private investor, in the disposition. As the industrial sector has grown in favor over the past 10 years, more businesses are deciding to buy their space to secure long-term benefits. Among the key reasons to buy industrial space instead of leasing it are:
- To building equity and potentially rent out part of the space for additional investment value. Many companies will buy a larger space than needed and lease out part of it to gain the rental income.A business can also increase its credit worthiness and leverage the building’s equity in later years for financing.
- For the security of knowing they can stay in the property long-term. This is important to some businesses that have specialized space needs or want to ensure they stay near their labor pool.
- To have more control over their expenses. In a strong landlord’s market, rents can escalate as leases expire, creating some uncertainty for the renter.
The O’Hare industrial submarket recorded $708 million in sales during the past year, according to CoStar research. The submarket has a 4% industrial vacancy rate, with rent growth increasing 6.5% during the same time period.
