CRE MARKETPLACE (pg.14): BROKERAGE FIRMS CONSTRUCTION COMPANIES/GENERAL CONTRACTORS FINANCE & INVESTMENT FIRMS LAW FIRMS/RE ATTORNEYS
VOL.32 NO.1
THE LEADING NEWS SOURCE FOR INDUSTRIAL REAL ESTATE PROFESSIONALS & USERS
JANUARY/FEBRUARY 2022
Revisiting Chicago Industrial Properties’ biggest themes and stories of 2021
Photo by Analogicus via Pixabay.
By AJ LaTrace, Managing Editor
B
y the time you’re reading this issue of Chicago Industrial Properties in print, we will already be well into 2022. And while there’s excitement for what the new year may bring, one thing that’s for sure is that 2021 was a tremendous year for the world of industrial real estate.
The Chicago area benefited greatly from the industrial boom, largely supercharged by the fast-growing transportation, logistics, and warehousing industries. Developers couldn’t build space fast enough for businesses in this industry, but there were also some major manufacturing
deals as well. Every other month, we publish our print publication with researched and reported long-form features. These pieces take deeper dives into what is happening in Chicago industrial real estate in the moment. And fortunately, the archive for 2021 will serve as a resource and record for those looking back at the big industrial boom from the early 2020s.
From refrigeration, to distribution, to manufacturing and adaptive reuse, there were many themes we explored 2021 (continued on page 10)
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Ongoing supply chain disruptions and virus spikes could spell feast or famine for industrial construction contractors in 2022 By AJ LaTrace, Managing Editor
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ith nearly two full years of collectively pushing through the pandemic, we’d think that the construction supply chain and runaway costs would be under control by now, right? Wrong. As soon as cases drop and life starts going back to normal, another variant wreaks havoc on an already exhausted nation. At this point, Chicago-area construction professionals have had enough time to adapt to CONSTRUCTION (continued on page 12)
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Revisiting Chicago Industrial Properties’ biggest themes and stories of 2021 The Chicago area benefited greatly from the industrial boom Ongoing supply chain disruptions and virus spikes could spell feast or famine for industrial construction contractors in 2022 With nearly two full years of collectively pushing through the pandemic, we’d think that the construction supply chain and runaway costs would be under control by now, right? Wrong.
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‘There weren’t that many lows’: Chicago industrial roller coaster expected to continue riding high in
2022 Now that 2022 has arrived, it’s any-
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2022 EDITORIAL BOARD Jeanne Rogers
Arthur J. Rogers & Co.
Corey Chase Newmark
Jerry Rotunno Associated Bank
Joe Pomerenke
Arco/Murray National Construction Company, Inc
Dan Fogarty
Becknell Industrial
Steve Schnur Duke Realty
Richard Prokup
First Industrial Realty Trust Inc.
Ron Behm
Colliers International
Adam Roth NAI Hiffman
Mike Yungerman Opus Group
Glen Missner
The Missner Group
one’s prediction what will happen next in the age of the pandemic. However, the general consensus within the developer community in Chicago is that this year will be much the same in terms of high demand for and short supply of new Class A industrial space.
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Industrial Insider: 2022 Forecast for Industrial Real Estate One of the most significant current commercial real estate stories is the industrial sector’s rise to the top of the pack, along with multifamily, as one of the two most desired asset types in demand by investors.
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FROM THE EDITOR "If 2022 is anything like the previous year, we can only expect to reach new highs in the world of industrial
The remaining hurdles and barriers to entry will be other, larger issues such as inflation, taxes, and access to capital. But if 2022 is anything like the previous year, we can only expect to reach new highs in the world of industrial real estate. And maybe once Ford and GM and the ilk sort out the chip shortage, the price of used cars will come back to earth. Electric cars are neat, but weren’t we promised hovering vehicles by 2022?
real estate."
W
elcome to 2022 – a year that sounds like it’s so far into the future that it should be the setting for a sci-fi movie or novel. Imagine a world that’s been plagued by a highly-contagious virus while society undergoes major changes in work and home life over a period of two years. It’s a wild, future world where people order everything they could ever possibly need
– groceries and dry goods – from online and get everything delivered on the same day. Sounds familiar, right? Well, it is indeed a wild future world and we’re living in it. And in 2022, the shift to e-commerce will only continue to grow. While it may feel like a brave new world in many ways, there are many positive things happening
that were long-overdue. For instance, the overwhelmed supply chain has forced individuals to adapt and for companies to plan ahead. We’ve also seen a renewed interest and real-world need to bring more manufacturing back to the United States.
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‘There weren’t that many lows’: Chicago industrial roller coaster expected to continue riding high in 2022 By AJ LaTrace, Managing Editor
N
ow that 2022 has arrived, it’s anyone’s prediction what will happen next in the age of the pandemic. However, the general consensus within the developer community in Chicago is that this year will be much the same in terms of high demand for and short supply of new Class A industrial space. Helping to offer some insight into the trends taking us into the new year, Vestian Global Chairman and managing broker, Michael Silver, connects the dots and discusses what we can expect to see — but also some scenarios where things could become a bit bumpy. Could runaway inflation derail the ride? We’ll have to wait and see. This last year has been, I guess, we could describe as a roller coaster in many ways. And so in the world of industrial, what were the high-highs and low-lows.
Photo via Pixabay.
There weren’t that many lows. The industrial market absorbed twice as much space in 2021 as it did in the previous two years. The vacancy rate is around 5% but rent growth is astounding — you know, 7.3% to around 8%. And everyone is panicked about securing the best logistics solution they can and the panic is causing the businesses that want to secure that best point-to-point transportation to ignore the basic fundamentals of what they're renting; meaning that they're paying more than they should or they're paying more than they have to. There's a lot of money trading hands, as opposed to just somebody trying to help the business, assess their situation, assess their logistics and help them get the best rent. And so if there’s a low, I would say that this is a year where the occupier — the tenant — is getting fleeced. If there's a high, it's for the developer making a lot of money, securing the lease and selling the building at an unprecedentedly high price because cap rates are so low right now. For instance, cap rates are coming down to close to 5%. We're already looking at low supply and very high demand from the tenant side, but also from the developer side. So, we have to think about the competition and how many folks from outside of the Chicago area have jumped in. But is there enough room for everybody? [Developers] are paying more money to secure land and they're paying more money to build buildings. They're just simply paying more because that’s the competition. The tenants’ competition is where is the property? And should they end up paying more because they just need it?
with. There's a big difference between all these players that have jumped into the marketplace and steady institutional players. Right now, everybody and their brother is putting on a developer hat and their desire is to just fleece the tenant who needs the space and gets them to pay a high price so they can sell [their building] at a higher price. And I think you're going to see that subsiding when credit isn’t as available as it is right now and the market decides who is going to be the survivor and who isn't. So, we’ll see some big changes next year?
Michael Silver
But here's a limit to what you can be paying for land and there's a limit to what you should pay for a building. A lot of the limitations are governed by the availability of money and the cost of the money. And if interest rates go up, these developers have a problem. And then the consumer has a problem too, with the increased interest rates, which can reduce demand to buy goods and services and reduce ecommerce. When can we expect to see any major changes in the current industrial market in Chicago? Or will this boom continue well into the future? I would throw my hat in for 2023, as opposed to this thing going on forever. People are saying that it’s going beyond 2024 and 2025 — and yeah, I just don’t see it that way. And I also think tenants don't necessarily have to be as fleeced as they are, if they know who they're doing business
Yes, I would say it's going to begin to happen in 2023 in this straight upward projection for the need to fix the supply chain and move away from China, and regionalization, and playing around with where the ports are — I think that's going to subside. What are some lessons you learned from last year? Or was there anything in particular that happened in your business that helped you identify a trend or consider doing things different? The key to all these deals [that we undertook] that made us think about it was two-fold. One: let's work parallel paths, meaning, let’s secure multiple offers so that the occupier is not forced into taking the rent that's being offered. For example, if rents are being offered at $10 a square foot, which we know is too high, and we take multiple offers, we could eventually get that rent down to $8.50 a square foot. Number two is to get ahead of it by being in the market for a year and a half early. Don't be in the market six months early and then you’re forced into a situation that
you might not want. The CEOs of these businesses that are taking this industrial space want to be protected and they want flexibility at the same time. So they want to know that there’s a rent stream that protects them in an occupancy for 10 years, whereas the typical developer today wants to shut it off around four to six years. So, the challenge becomes how do you get around that? That's when you have to have knowledge of what the developer is going to receive by the tenancy in the credit of the tenant. And then you can translate that into an exit price. What do you predict for 2022? Will we see more of what happened in 2021? The only impediment in 2022 would really have to be a dramatic increase in interest rates and the availability of money. What did the pandemic do? It slammed demand for a while. People were scared, and then all of a sudden the demands were accelerating. And then when all that demand accelerated, that's where we were creating inflation: you have an over-demand for limited supply. The reverse of that, which would really throw a curveball at the market, would be liquidity and the availability of money going out of the market and the demand side all of a sudden being drastically reduced and interest rates going up. So, the cost of bringing a property to market is not worth what the seller would like to sell the building for. But I think having 2022 should be a strong year, unless the scenario that I just described comes into place. I think people are so concerned with fixing the supply chain, that they're going to ignore the dynamics and the realities of the real estate market.
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Industrial Insider
2022 Forecast for Industrial Real Estate By Elise A. Couston, SIOR, Senior Managing Director, Newmark
Elise Couston
O
ne of the most significant current commercial real estate stories is the industrial sector’s rise to the top of the pack, along with multifamily, as one of the two most desired asset types in demand by investors. The pandemic created setbacks in the commercial real estate market in 2020 and 2021 and there are still lingering challenges, such as supply chain and labor supply issues. However, the outlook for 2022 remains very positive, and reflects the confluence of many factors which have significantly increased the demand for industrial real estate since the beginning of the pandemic and for the foreseeable future. This is, in part, due to the pent-up demand that began as the result of companies putting real estate plans on pause at the beginning of 2020. No—two years later—in some core markets, warehouse/ distribution, manufacturing and technology companies cannot find enough industrial space to accommodate their current and future business plans. Several of the user-types driving increased industrial property demand are e-commerce compa-
nies and their suppliers, food and beverage companies (including refrigerated and frozen food products), pharmaceutical and medical-related companies and packaging and consumer products companies. Many companies have been implementing a “plus one” facility strategy as inventory control has become a primary focus for industrial users. Therefore, increased warehouse footprints—to accommodate additional inventory due the recent and continuing supply chain disruptions and as an additional service to customers—has been an emerging trend. In order to obtain some additional perspectives on industrial real estate in 2022-2023, I spoke with several of the most active industrial developers for their predictions for the next 12-24 months: Nate Rexroth – Executive Vice President Asset Management, Centerpoint Properties “The log jams experienced in 2021 at top ports like L.A./Long Beach and N.Y./N.J. have not abated since the Biden Administration announced steps to increase efficiency in December. Ships continue to queue in record numbers on both coasts. Worker shortages and rising fuel costs promise to continue spiking transportation costs and the prices of goods and raw materials for the foreseeable future. Construction starts promise to continue to be more challenging and costlier, too, in 2022. These factors all point to another year of tremendous demand and escalating rent rates for highly functional industrial facilities and properties in port-proximate and in-fill submarkets well into 2023. Users are increasingly looking to lock-in rents sooner rather than later to avoid getting priced out of the real estate they need to stay competitive.” Katie Michel – Senior Vice President, Pritzker Realty Group “We expect unprecedented delays in procuring construction materials, particularly pre-cast panels and structural steel to limit the level of new warehouse construction
in 2022. Low existing vacancy and limited new inventory levels are expected to result in continued net rental rate growth with in-fill and high velocity submarkets experiencing the highest growth. Developers with existing land positions and those buying land today will be looking for creative ways to put that land into production before 2023 to meet the continued market demand. Developers are highly focused on locking in hard construction pricing to ensure they can hit their return thresholds. Volatile roofing insulation material cost is the most difficult commodity to lock in today.” Brian Quigley – Executive Vice President, Conor Commercial Real Estate “2022 will be a year of sticker shock for tenants in the market searching to lease a new building. Construction costs will increase in the neighborhood of 25% over projects delivered in 2021 and that cost increase will be passed along to tenants in 2022 in the form of significantly higher base rents. Cap rate compression will bottom out in the 4.0% range and that will impact developers who have reaped windfall profits from cap rate compression.” Scott Gibbel –Vice President of Capital Deployment and Leasing, IDI Logistics “Build-to-suits, as a percentage of new supply, will reach record levels in 2022 and 2023, as a result of surging occupier demand and longer development lead times. Rent growth will be as strong, if not stronger, than it was in 2021—double digit is my prediction. Construction costs will be more predictable, and we shouldn’t see any spikes in pricing like we did in 2021. Material lead times will be the story of 2022, surging demand and suppliers are still playing catch up.” In addition to the prevailing challenges described above, as well as rising interest rates and the continuing pandemic impacts, potential development starts in metro Chicago will reach an all-time record of up
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to 34 million square feet. The upper limit on the amount of industrial product started by developers in 2022 will be governed by the capacity of precast concrete plants to produce and deliver wall panels, as well as other construction supplies, such as roofing materials, lumber and steel. Users of industrial real estate will experience the following as they are negotiating a new lease, a lease renewal, property purchase or build-to-suit: • Higher lease rates and sale prices• Fewer available properties to choose from • Annual lease escalations of 3-4% (up from 2 to 2.5%) • Much higher costs for property modifications and tenant improvements • Shorter contingency periods for decision-making and guaranteed pricing Over the last few years, companies have been focused on making locational decisions leveraging new data sources and analytics, and they are selecting properties in strategic locations in order to attract sufficient labor and manage transportation costs. Owners of property portfolios are also prioritizing locational decisions that are closer to population hubs to accommodate last-mile deliveries, as customers are demanding shorter and shorter delivery times. We expect that 2022 will be a banner year for industrial real estate developers, users and real estate professionals. In spite of rising construction costs, labor shortages and escalating sale prices and rental rates, it appears that industrial real estate will continue to flourish for the next 12-24 months at, perhaps, record levels. Thank you to Nate Rexroth at Centerpoint Properties, Katie Michel at Pritzker Realty Group, Brian Quigley at Conor Commercial Real Estate and Scott Gibbel at IDI Logistics for their insights.
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this year, and invite all readers to take a more thorough look back at the archive. We appreciate your support throughout the year, and as always, look forward to reconnecting and reporting on the big stories next year in 2022. Industrial corridor expansion We’re in a moment where there’s so much demand for industrial space that development is pushing further and further out into collar counties and other regional markets in northwest Indiana and southeast Wisconsin. But there’s also a tremendous amount of demand for industrial space near Chicago proper, as well. We took a bigger picture look at I-88 and its push further out towards DeKalb. More than that, we also looked at how the I-88 submarket is evolving from a tech office corridor to a manufacturing and logistics superhighway. We also profiled how a mature, built-up submarket like the I-55 corridor is expanding. And at O’Hare, developers and brokers are under immense pressure to secure new land deals. Insight from top industrial developers
commercial kitchen, and social club. And down in Pullman, we saw the reopening of the old Pullman Palace Car Company factory campus as the visitors center for the Pullman National Monument.
"We’re in a moment where there’s so much demand for industrial space that
Assessing the impact of policy on industrial development
development is pushing further and further out ." No one knows what’s happening in the market better than the developers who are competing with one another for deals. This is why we routinely reach out to the top industrial developers for comments on trend stories and predictions for what’s ahead. It should be no surprise that the big players saw growth and competition for 2021 around the halfway point of this year. Our area’s industrial leaders also shared their experiences in person at our events, such as the 18th Annual CIP Industrial Summit. And then for our end-of-year coverage, we reconnected with the top developers, who predicted further rent grow and even more competition for coveted development opportunities in 2022.
Adaptive reuse in industrial real estate While the bulk of headlines and stories this year were on the burgeoning transportation and logistics industry, other entrepreneurs have made headway on utilizing industrial space for unconventional purposes. One of the most notable new developments within Chicago proper in 2021 was the opening of the nation’s largest aviation mechanic school on the South Side. Then you also have business owners taking outdated and obsolete low-density industrial spaces and turning them into something entirely new. For instance, the Guild Row development in Avondale, which has transformed a series of aging industrial buildings into a new event space,
Whether we like it or not, policy and elected leaders have a significant impact on economic development and investment. It’s important for developers and the like to work within the framework of the existing policy climate and be diplomatic when pushing for zoning and new construction. And then there are broader economic policies designed to spur new investment and development, such as the Opportunity Zone program, in which much of the South Side of Chicago falls under.
At the higher level, national changes to workplace safety and regulation has had a trickle down effect on the trucking and transportation industry. While the new laws and rules are designed to protect drivers, there are some unintended consequences that are putting even more pressure on an already strained supply chain.
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The factors driving the industrial market
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12 CONSTRUCTION (continued from page 1)
the challenges. But it doesn’t help that the delays are growing and price increases are getting larger. However, developers still need to build the space and are bucking up to meet the moment. “If you order precast [concrete] today, you won’t get it until 2023. So that’s been a challenge,” says Mike Sullivan, President and CEO of Peak Construction. “The good news is that demand remains high and developers seem to be resilient in their efforts to build modern, state of the art [facilities].” Compared to the final weeks of 2020, a Chicago-focused Q4 2021 industrial report from Savills shows that the vacancy rate, which currently stands at 8%, has declined while asking rent rates — nearly $6 per square-foot — have increased. And by the end of this past year, there was 28.5 million square feet of new space under construction. Despite the ongoing issues with building material costs and lead times, there was roughly 10 million square feet more new space under construction in Q4 2021 versus Q4 2020. Year-over-year industrial deal activity was up in 2021. Overall leasing improved
Photo via Pixabay.
by 7.7% for the Chicago metro in 2021 versus 2020, the report indicates. Or in other words, it’s still a feeding frenzy.
However, all submarkets are not created equal, so some areas are getting more attention than others. The Savills report indicates that the bulk of the projects still under construction at the end of
2021 were either in the Joliet area, with 7 million square feet of projects, or up in Kenosha, which has 5.6 million square feet of active construction.
JA N UARY/FEBRUA RY 2022 C HICAGO I N D U S T R I A L P R OP E RT I E S
"I would tell you, if you don't have work on your books in the Chicago area for
Fed is looking to raise interest rates to try and calm the runaway inflation. According to Rider Levett Bucknall, which publishes quarterly reports on construction costs, indicates that construction costs have increased by 7.42% in the last 12 months. This figure follows the total 2021 inflation arch closely. In the Chicago area specifically, construction costs have increased by 2.28% between July 1, 2021 and October 1, 2021, the report shows.
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And in the Chicago area, we can expect to see another strong year for industrial in 2022, Sullivan says.
However, for construction businesses who may still be behind the eight ball, it’s likely to be a very tough year.
“I think 2022 will be a good year for us because we've got so much work already,” Sullivan says. “But it will be a challenge to fulfill it because we get calls everyday from people who signed contracts and made promises that they can’t keep.”
“I would tell you, if you don't have work on your books in the Chicago area for 2022 right now, you’re not going to be able to do it,” Sullivan elaborates. “All of the available materials are booked through all of next year.”
2022 right now, you’re not going to be able to do it. All of the available materials are booked through all
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of next year." SIOR Chicago thanks our 2021 Platinum Sponsors for supporting the Chapter! “Compared to a year ago, it's every bit as challenging — and maybe more challenging — because we thought over the course of the year, some of the supply chain stuff would work out and it just hasn't,” Sullivan says of the current moment.
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Sullivan highlights one example where his team paid for the expedited delivery of rooftop air conditioning equipment, but are now told that the order will be at least two months late. On top of all of the logistical issues that have plagued the industry over the last two years are only getting more complicated as the highly-contagious Omicron variant sweeps through the nation. And despite relatively high vaccination rates in the Chicago area, the virus is knocking workers out of the job for at least a week or two as they recover. Just like inflation, which can no longer be considered “transitory,” the supply chain disruption is still going to take longer than expected to get resolved, Sullivan suggests. “I guess if there is good news, I do think a lot of our customers understand that we're really battling the storms and headwinds and that there was no way we could have anticipated this,” he says. “There's nothing we can do other than try to react and scramble as best we can to keep things moving ahead.” Recently, Federal Reserve Chair Jerome Powell has expressed concern about the high level of inflation and the threat it poses to the country’s economic recovery. He’s also indicated that the nation no longer needs aggressive stimulus deals to get the wheels turning again. Instead, the
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JANUARY MARKETPLACE BROKERAGE FIRMS
CATON COMMERCIAL REAL ESTATE GROUP DOLAN & MURPHY TEAM
765 Orchard Avenue Aurora, IL 60506 P: 630-801-8800 Website: CatonCommercial.com Key Contact: Brian K. Dolan Commercial Broker, BK.DolanMurphyTeam@CatonCommercial.com Services Provided: The professional team of commercial real estate brokers on the Dolan & Murphy Team of Caton Commercial Real Estate represent the interests of landlords, tenants, investors and property owners with strong roots in Aurora, IL and the surrounding suburbs. The brokers of this dynamic team handle a wide range of commercial real estate transactions, specializing in industrial, land sales, development and investment sales. Company Profile: The Dolan & Murphy Team joined the Caton Commercial Real Estate Group in January of 2021 leveraging their brokerage expertise and client relationships as a collaborative group. The Dolan & Murphy Team has a long legacy and has been transacting in commercial real estate since 1965; providing trusted advisory and intelligent solutions that drive wealth creation for clients through third party brokerage transactions and value creation through skilled property management services. Notable Transactions/Clients: Lease of 230,979 SF warehouse at 900 Knell Rd in Montgomery; Sale of Valley Green Golf Course in North Aurora to OPUS, Sale of Oberweis Property in North Aurora (Randall & Ice Cream Dr) to Transwestern.
FRIEDMAN REAL ESTATE
34975 W. Twelve Mile Road Farmington Hills, MI 48331 P: 888.848.1671 Website: friedmanrealestate.com Key Contacts: David B. Friedman, President/CEO; Gary Goodman, Sr. Managing Director-Brokerage Services Services Provided: Friedman offers a full range of real estate services including commercial and multifamily property and asset management, tenant and landlord representation, investment and loan sale advisory, space planning, design and construction and a unique platform of lenderfocused bankruptcy, receivership and distressed asset services. All services are provided inhouse, though a single point of contact, which guarantees that clients receive the most timely and efficient service available in the marketplace. Company Profile: Founded in 1987, Friedman Real Estate is one of the largest privately held commercial real estate organizations in the nation; currently managing over 15M SF of commercial space and more than 15,000 apartment homes located throughout the country. Friedman’s commercial brokerage team has over 800 current listings with $20 billion in closed transactions. Notable Transactions/Clients: • Hovis Light Industry Park – Dekalb • Poplar Creek Office Plaza – Hoffman Estates • 801 North Route 83 – Bensenville • Crystal lake Office – Crystal Lake • Broadway Village – Pekin • National Railway Equipment – Dixmoor • Daycare Building – Bolingbrook • Freeport Shopko – Freeport
NAI HIFFMAN
One Oakbrook Terrace, Suite 400 Oakbrook Terrace, IL 60181 P: 630.932.1234 | F: 630.932.7258 Website: hiffman.com Key Contacts: Dave Petersen, CEO, dpetersen@hiffman.com; Michael Flynn, COO, mflynn@hiffman.com Company Profile: NAI Hiffman is the largest independent real estate services firm in the Midwest, providing leasing, property management, tenant representation, capital markets project services, research, and marketing services for institutional and private owners and occupiers of commercial real estate. NAI Hiffman currently leases and manages over 100.5 million square feet, encompassing more than 800 properties in 28 states. With more than 200 employees, NAI Hiffman is the Chicago-area representative for NAI Global, the world’s largest managed network of real estate service providers, with more than 6,000 local market professionals managing more than 1.15 billion square feet of property. NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific. For more information, please visit hiffman.com
PW COMMERCIAL REAL ESTATE
8725 W. Higgins Road, Ste. 800 Chicago, IL 60631 P: 773.714.9300 | F: 773.714.8253 Website: painewetzel.com Key Contacts: Jerry Sullivan, Principal, sullivan@painewetzel.com; Ed Wabick, Principal, ewabick@painewetzel.com Services Provided: Real Estate Strategy with dependable results in Brokerage, Consulting, TenantAdvisory, Corporate Services, Property Management, Development, Strategic Planning, Research and Construction Management. Company Profile: PW has been a leader in industrial, office and investment real estate since 1975. We pride ourselves on offering unparalleled brokerage services and superior market expertise to attain your real estate and business goals.
CONSTRUCTION COMPANIES/GENERAL CONTRACTORS ALSTON CONSTRUCTION COMPANY
1900 Butterfield Road, Suite 1020 Downers Grove, IL 60515 P: 630.437.5810 Website: alstonco.com Key Contact: Greg Kolinski, Director of Business Development, gkolinski@alstonco.com Services Provided: Alston offers a diverse background of design-build experience, general contracting and construction management of industrial, commercial, healthcare, retail, and municipal projects. Company Profile: Alston Construction's success begins and ends with our approach to planning, scheduling and choosing the right team. We have been adhering to an open and collaborative approach since our founding more than 35 years ago. Notable/Recent Projects: 1.5M SF Distribution Center for General Mills. John Pennycuff Memorial Apartments 7-story, 88-units. Call Center with open offices with full-service café, gymnasium, and fitness center for Medline Industries. Freestanding Medical Office Building with 33 exam rooms, rehabilitation gym, and support service/diagnostic space for CHI Health and NexCore Group. 1.4 million SF build-to-suit distribution center for Medline Industries in Grayslake.
CLAYCO, INC.
35 E. Wacker Drive, Ste. 1300 Chicago, IL 60601 P: 312.658.0747 Website: www.claycorp.com Key Contacts: Bob Clark, Executive Chairman & Founder, clarkb@claycorp.com; Kevin McKenna, President - Construction Group, mckennak@claycorp.com Services Provided: Clayco is a full-service turnkey real estate, architecture, engineering, design-build and construction firm. Company Profile: Clayco specializes in “the art and science of building”, by providing fast track, turnkey design build solutions in North America for commercial, institutional, industrial and residential building types. Clayco looks “beyond these walls” focusing on helping our clients fulfill their mission. Notable/Recent Projects: St. Louis – Centene Campus, 100 Above the Park, Benson Hill, Delmar Devine Chicago - Willis Tower Transformation Project, Macy’s Flagship Redevelopment, Fulton East, Upshore Chapter National – Blue Origin, Dominion, Centene East Coast HQ, Amazon E Commerce, Penn State
LAMP INCORPORATED
460 North Grove Ave. Elgin, IL 60120 P: 847.741.7220 | F: 847.741.9677 Website: lampinc.net Key Contact: Ian Lamp, President, ilamp@lampinc.net Services Provided: Design/Build, General Construction, and Construction Management services for additions, build outs, renovations, and new facilities for office, industrial, logistic, technology, and commercial buildings. Company Profile: Lamp Incorporated has been providing professional construction services for over 80 years. Our commitment of exemplary service to our clients creates projects that are completed early and with exceptional value. Notable/Recent Projects: Mitutoyo America Corporation North American Headquarters, Aurora, IL. 96,000 SF warehouse addition; 63,000 SF, three-story office addition, which includes high tech showroom, two story atrium, corporate offices/ conference room, cafeteria, and locker rooms.
MCSHANE CONSTRUCTION COMPANY
9500 West Bryn Mawr Avenue Ste. 200 Rosemont, IL 60018 P: 847.292.4300 | F: 847.292.4310 Website: www.mcshaneconstruction.com Key Contacts: Mat Dougherty, PE, President, mdougherty@mcshane.com Services Provided: McShane Construction Company offers over 30 years of experience providing design/ build, design-assist and general construction services on a national basis. The firm’s diverse expertise includes build-to-suit and speculative developments for the industrial, food processing, multi-family, senior and student housing, office, healthcare, retail, hospitality, recreational and institutional markets. Company Profile: Headquartered in Rosemont, Illinois with regional offices in Auburn, Alabama, Irvine, California, Phoenix, Arizona, Madison, Wisconsin and Nashville, Tennessee, McShane Construction Company provides comprehensive construction services on a local, regional and national basis for a wide variety of market segments. The firm is recognized as one of the Chicago area’s most diversified and active contracting organizations with a reputation built on honesty, integrity and dependability. Notable/Recent Projects: 4400 Grove – Chicago’s Bronzeville Neighborhood – Mixed-use, affordable fourstory development now complete totaling 84 rental units with commercial space on ground floor.
JA N UARY/FEBRUA RY 2022 C HICAGO I N D U S T R I A L P R OP E RT I E S MERIDIAN DESIGN BUILD
9550 W. Higgins Road, Suite 400 Rosemont, IL 60018 P: 847.374.9200 | F: 847.374.9222 Website: meridiandb.com Key Contacts: Paul Chuma, President; Howard Green, Executive Vice President Services Provided: Meridian Design Build provides construction and design/ build construction services on a national basis with a primary focus on industrial, office, medical office, retail and food and beverage work. Company Profile: With a team of in-house professional project managers, Meridian has extensive experience coordinating the design and construction of new buildings, tenant improvements, and additions/ renovations from 15,000 square feet to 1,000,000+ square feet. Meridian Design Build has been a Member of the U.S. Green Building Council since 2007. Notable/Recent Projects: HSA Shorewood, Shorewood, IL - 757,880 sf speculative industrial facility for HSA Commercial Real Estate. Banner Wholesale, Chicago, IL - 75,000 sf wholesale grocery warehouse and corporate headquarters.
PEAK CONSTRUCTION CORPORATION
1011 E. Touhy Ave., Ste. 100 Des Plaines, IL 60018 P: 630.737.1500 | F: 630.737.1600 Website: peakconstruction.com Key Contacts: Michael P. Sullivan, Jr., CEO & Founder, msullivan@peakconstruction.com; John Reilly, President, jreilly@peakconstruction.com Services Provided: Peak Construction Corporation offers design/build and construction management services through a strategically developed culture, highly regarded for dynamic problem-solving abilities and a network of alliances that allow Peak to bring in experts and partners from a wide spectrum of fields and roles. Company Profile: Peak Construction Corporation is a privately-held, well-capitalized design/ build firm. For almost 25 years Peak has delivered industrial, hospitality, office, healthcare, retail, multi-family and specialty construction projects on-time and on-budget. Notable/Recent Projects: Peak’s recent Midwest projects include Scannell Properties’ DuPage Business Center Phase II in West Chicago, IL and Strongsville Commerce Center in Strongsville, OH, NorthPoint Development’s Heartland 94 Logistics Center Building 1, IDI Logistics’ Gateway Romeoville, Janko Group’s Bristol Business Park and various tenant improvements throughout Chicagoland.
SUMMIT DESIGN + BUILD, LLC
1036 W. Fulton Market, Suite 500 Chicago, IL 60607 P: 312.229.4630 | F: 312.229.1147 Website: summitdb.com Key Contacts: Adam Miller, President, amiller@summitdb.com; Deanna Pegoraro, Vice President, dpegoraro@summitdb.com: Larry Blouin, Vice President, lblouin@summitdb.com Services Provided: Summit Design + Build, LLC is a provider of full service general contracting, construction management and design/ build construction services for the commercial, industrial, multi-family residential, office/tenant interiors, hospitality and institutional markets. Company Profile: Headquartered in Chicago’s Fulton Market and with regional offices in Tampa, FL and Austin, TX, Summit Design + Build has been involved in the design and construction of over 330 buildings and spaces totaling more than 7 million square feet over the firm’s 17 year history. Notable/Recently Completed Projects: 1400 W Monroe (Luxury Multifamily Residential), 113 E Oak (Ground-up Retail), Open Kitchens (Industrial), Glen Oak Country Club (Recreational) , 448 N LaSalle – WeWork (Co-working office), Elmhurst Hall (Restaurant) and La Galera Produce (Industrial).
VICTOR CONSTRUCTION
2000 W ATT Center Dr., Suite East C219 Hoffman Estates, IL 60192 P: 847.392.6900 Website: victorconstruction.com Key Contact: Zak Schuttler, President, ZakS@victorconstruction.com Services Provided: Victor Construction Co., Inc. manages projects from ground-up site developments to interior build-outs, specializing in retail, industrial, and commercial markets. Company Profile: Victor Construction Co., Inc. remains a family-owned and operated General Contractor. Having been in business since 1954, our firm has extensive experience managing every aspect of interior construction for the corporate, manufacturing, industrial, and retail sectors. Notable/Recent Projects: Peppa Pig World of Play - 15k SF childrens’ amusement center inside Woodfield Mall (former Rainforest Cafe space)
FINANCE & INVESTMENT FIRMS ASSOCIATED BANK
525 W. Monroe Street, Ste. 2400 Chicago, IL 60661 P: 312.544.4645 Website: associatedbank.com/cre Key Contacts: Gregory Warsek, Group Senior Vice President/ Senior Regional Manager, greg.warsek@associatedbank.com Services Provided: Our clients include professional developers of income producing commercial real estate, including multi-family properties, retail, office, self- storage, student housing, industrial, and for sale housing. Company Profile: Commercial Real Estates offices are located in Chicago, Milwaukee, Madison, Green Bay, Cincinnati, Indianapolis, Minneapolis, Detroit, St. Louis and Dallas. Associated Banc Corp has total assets of $35 billion and is one of the top 50 financial services holding companies in the United States.
FOR ADVERTISING OPPORTUNITIES IN THIS SECTION, PLEASE CONTACT SUSAN MICKEY AT SMICKEY@REJOURNALS.COM OR 773.575.9030
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MARQUETTE BANK
10000 W. 151st Street Orland Park, IL 60462 P: 708-364-9135 Website: emarquettebank.com Key Contact: Mark Wojack, First Vice President, mwojack@emarquettebank.com Services Provided: Full line of Commercial, Business and Real Estate loans customized to your individual needs including: commercial and residential construction loans, commercial mortgages, equipment loans and working capital lines of credit. Company Profile: Marquette Bank started in Chicagoland in 1945 and is still locally-owned/operated. Expect quick decisions, competitive rates, easy application and personal service. Personal/business banking and lending, home mortgages, land trust services, estate planning, insurance services, wealth management and multifamily lending.
UNION NATIONAL BANK
101 E. Chicago St. Elgin, IL 60120 P: 847.888.7500 | F: 847.888.2662 Website: unbelgin.com Key Contacts: Anthony Catanese, Business Development Manager, afcatanese@unbelgin.com; Jill Markowski, Director, jemarkowski@unbelgin.com; Jay Deihs, Sr. VP, jddeihs@unbelgin.com Services Provided: Loans customized to meet the individualized needs of our borrowers. Servicing investors and small business owners. Company Profile: Privately-held, Commercial Bank. 110 years old. Providing Personal service throughout the Chicago Metro area. Known for fast response time and experience in Commercial & Investment Real Estate lending. Service Territory: Chicagoland including NE Illinois collar counties
LAW FIRMS/RE ATTORNEYS MELTZER, PURTILL & STELLE LLC
1515 Woodfield Road, Ste. 250 Schaumburg, IL 60173 P: 847.330.2400 | F: 847.330.1231 300 S. Wacker Drive, Ste. 2300 Chicago, IL 60606 P: 312.987.9900 | F: 312.987.9854 Website: mpslaw.com Key Contact: William J. Mitchell, Managing Partner, wmitchell@mpslaw.com Services Provided: The firm provides an exceptionally wide range of real estate-related services, including commercial real estate and leasing; land use, zoning, and entitlement; construction and financeincluding TIF and other development incentives and commercial litigation. Company Profile: Meltzer, Purtill & Stelle LLC is a business-to-business law firm with exceptionally strong capabilities in all areas of real estate law. The firm provides a full range of transaction and litigation services to real estate developers, financial institutions, and businesses engaged in corporate, industrial, and retail development as well as financing, leasing, and investment.
SARNOFF & BACCASH
Two N. LaSalle St., Ste. 1000 Chicago, IL 60602 P: 312.782.8310 | F: 312.782.8635 Website: sarnoffbaccash.com Key Contacts: James Sarnoff, jsarnoff@sarnoffbaccash.com; Robert Sarnoff, rsarnoff@sarnoffbaccash.com Services Provided: Sarnoff & Baccash is a leading and recognized law firm concentrating solely in the field of property taxation. We help client’s secure favorable taxes in Illinois through property tax appeals, incentives and consulting. Company Profile: Sarnoff & Baccash’s clients include Owners, Developers, Managers, REIT’s, Fortune 500 Companies, Private Equity Firms, etc., in connection with commercial property, high-rise and low-rise apartment buildings, condominium associations and single-family home portfolios.
SAUL EWING ARNSTEIN & LEHR LLP
161 North Clark Street Chicago, IL 60601 P: 312.876.7100 Website: www.saul.com Key Contacts: Kathleen Gilligan, Partner, Kathleen.Gilligan@saul.com; Roy Bernstein, Partner, Roy.Bernstein@saul.com; Barry Katz, Partner, Barry.Katz@saul.com; Jeff Friedman, Partner, Jeffrey.Friedman@saul.com; David Yontz, counsel, David.Yontz@saul.com Services Provided: Our Real Estate attorneys help clients navigate complexities to realize their real estate vision. We serve a wide range of clients on local, regional and national levels, including developers, lenders, managers, purchasers, sellers, owners, landlords, tenants, investors, REITs, and regulatory authorities. Our attorneys provide a broad array of services, including assessing and resolving environmental issues, to address the unique needs and challenges that arise at every stage of an industrial real estate project or transaction. Company Profile: Saul Ewing Arnstein & Lehr LLP is a full-service law firm that offers clients the national reach and sophisticated experience of a large firm and the local connections and value of a boutique firm.
TAFT LAW
111 East Wacker, Suite 2800 Chicago, IL 60601 P: 312.527.4000 Website: taftlaw.com Key Contact: Kathryn Kovitz Arnold, Chair, Real Estate & Condominium Groups, karnold@taftlaw.com Services Provided: Experienced legal counsel is a critical component to delivering successful real estate transactions. Taft’s 90+ real estate attorneys leverage our skills and depth of industry knowledge to help our clients mitigate risk and avoid obstacles, and deliver results to our clients in a timely, cost-effective manner. Company Profile: As a leading example of a modern law firm, Taft honors how we work together as a diverse team to be the inclusive employer of choice across all of our markets. Each Taft team member is positioned to excel. Our 630 attorneys collaborate to meet and exceed client expectations.
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