July August 2022 Chicago Industrial Properties by RE Journals

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What’s next for Chicago’s red-hot industrial market?

Pullman Crossings. Courtesy of Ryan Companies

By Mia Goulart, CIP Staff Writer

t’s been good year for industrial real estate, especially in Chicago.

The market has seen a record-breaking year, despite a fair share of economic hurdles still at play. So how did Q1 and Q2 of 2022 shake out? And what about the rest of the year?

Chicago Industrial Properties spoke with Kyle Schott, Director of Real Estate Development, Ryan Companies; Kelly Disser, Executive Vice President, NAI Hiffman; and Brian McKiernan, Senior Vice President, Development, CenterPoint Properties, about Chicagoland’s red-hot demand and the forecast for Q3 and Q4. INDUSTRIAL REVIEW (continued on page 6)

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The main buzzword for I-55? Growth By Mia Goulart, CIP Staff Writer

rowth. This is the main buzzword when talking about the I-55 Corridor. But is the increasing demand welcome news for all? It depends on who you ask. I-55’s present vacancy rate is just 1.4%, or 1.5 million square feet, and the shortage of supply has caused rents for ready-to-occupy space to skyrocket above predictions. This is, of course, unfortunate for businesses wanting to either grow

I-55 (continued on page 8)

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Chicago Industrial Properties® (ISSN 1546-377X) is published bi-monthly for $59 per year by Real Estate Publishing Corporation, 1010 Lake St Suite 210, Oak Park, IL 60301. Contact the subscription department at 312.933.8559 to subscribe. © 2022 by Real Estate Publishing Corporation. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or by any information storage or retrieval system.

What’s next for Chicago’s redhot industrial market The industrial market has seen a record-breaking year, despite a fair share of economic hurdles still at play. So how did Q1 and Q2 of 2022 shake out? And what about the rest of the year? The main buzzword for I-55? Growth I-55’s present vacancy rate is just 1.4%, or 1.5 million square feet, and the shortage of supply has caused rents for ready-to-occupy space to skyrocket above predictions.

The growing importance of property management in today’s industrial climate Chicago Industrial Properties recently spoke with Carrie Szarzynski, Senior Vice President — Midwest Region, Hiffman National, one of the country’s largest industrial property management firms, about how the right team can make it easier for warehouse and logistics owners to attract and retain tenants at their facilities.

Modernization among industrial assets is crucial. Especially now Industrial in Chicagoland is rapidly evolving, signaling a crucial need for market modernization among assets — especially for players with an increasingly outdated warehouse supply. Backlog blues in Chicago? That’s what Newmark is saying New projects across the U.S. are now taking five months longer on average to complete, compared to 2019, causing a significant backlog in the pipeline

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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

Stotan Industrial

Steve Schnur Duke Realty

Adam Moore

First Industrial Realty Trust Inc.

Ron Behm

Colliers International

Adam Roth NAI Hiffman

Mike Yungerman

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The growing importance of property management in today’s industrial climate By Mia Goulart, CIP Staff Writer

s market trends evolve, so does the role of property managers. Demand for new industrial and logistics space continues to soar, and choosing the right management company is not only important, but critical for ownership success in today’s climate. But what should industrial owners look for when hunting for property management services? Chicago Industrial Properties recently spoke with Carrie Szarzynski, Senior Vice President — Midwest Region, Hiffman National, one of the country’s largest industrial property management firms, about how the right team can make it easier for warehouse and logistics owners to attract and retain tenants at their facilities. Perhaps the most important characteristic of good property management is the willingness and ability to form a strong connection with the tenant. Though one might assume many users operate independently,

Carrie Szarzynski

Szarzynski said maintaining a proactive relationship to address concerns and ensure the building is appropriately cared for is becoming more important — especially considering the flood of activity and the challenges associated in today’s market.

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And because the unoccupied period in between tenants has lessened due to consistent demand, monitoring the building and its systems condition throughout tenant use has become necessary, as has paying close attention to tenant needs. Environmental, Social, Governance, for example, or ESG, is also shifting the market significantly for larger institutional owners, which is changing how buildings are staffed. One PM team could manage 15-20 buildings prior to the rise of ESG, but with ESG becoming more important in the eyes of both clients and lenders, PMs’ list of responsibilities continues to grow. According to Szarzynski, PMs must now collect users’ monthly utility information so that it may be turned into ESG ratings. “We hardly had anybody asking questions about ESG two years ago, but we’re seeing it more and more,” Szarzynski said. “Forty percent of our clients are already engaged and committed to it, and the others are asking questions daily. Many of our clients have also hired senior ESG professionals, and we must now report to them, as well.” If a building owner wants to show ESG compliance, they must show the building is environmentally efficient, which is where PMs step in. Many clients are also looking to partner with PM companies who have implemented an ESG program within their own organization, which means PMs must concern themselves with not only ESG for the buildings and clients they work with, but dually, their own internal policies, as well. Simply, ESG is changing the scope of responsibility for PMs in the market. But that’s not the only interesting shift. Because the market is experiencing such competitively high trades, some of Hiffman’s clients are beginning to explore the acquisition of more Class B and flex buildings to achieve higher investment returns.

“You might have a one-hundred-thousandsquare-foot building with seventy small tenants,” Szarzynski said. “That’s incredibly labor intensive and not our typical assignment. Finding creative solutions to cover costs is important because that’s a different level of involvement.” “Creative” has been a frequently used word this year, as occupiers, or those who wish to rent, find ways to combat the market’s many obstacles. Tenants who want space will get it — even if at the expense of another available building. Hiffman is also seeing clients buying unique properties, be it houses, office buildings, et cetera, to knock them down for their own industrial build-to-suit. It’s no longer just about finding open farmland. It’s much more strategic in the way clients seek to expand their portfolios, but it’s not solely due to lack of space. Location also plays a big hand. “It’s incredibly competitive and has been for the last several years ,” Szarzynski said. That said, Hiffman is starting to see a small slowdown in trading, which will likely continue through year-end, as a result of recent global events, concerns of recession and higher interest rates but it is not yet certain when or if the supply/demand imbalance will equalize. One thing we know: PMs are essential in today’s market and, now more than ever, it’s crucial to remain responsive to tenants’ and clients’ evolving needs. “Property management is more than collecting rent,” Szarzynski said. “It’s risky for a building owner to rent to a company without someone monitoring its use. Ensuring the [PM] team is engaged and involved with every building and every user is necessary, and it’s that much more important in today’s market to provide users the support needed to be successful in their endeavors.”

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INDUSTRIAL REVIEW (continued from page 1)

4300 N. Brandon Rd., Joliet, IL.

The increase in rents is no secret and occupancy is high, but the market is in a different place now than it was at the beginning of the year, and Kyle Schott said a few factors have contributed to the change. “Interest rates are continuing to climb and we’re still figuring out how that will affect capital and our ability to fund projects,” Schott said. “Cap rates are also starting to rise again after two years, and land pricing is still high. Rents are growing, which helps, but they’re not growing at the pace necessary to combat those issues.” The fundamentals are still strong, though, and demand will remain as long as companies need space. Demand will remain because people need space, leaving companies to get creative in the ways in which they build. One strategy being explored to combat the supply/demand imbalance is the building of multilevel facilities, especially near O’Hare. In other words, if you can’t build out, build up. “We have to build up in certain urban markets because users still want to be in that environment for access to labor, which has been a challenge for a lot of tenants,” Schott said. “Cost per square foot is much higher for vertical building, but if it works for the tenant from both a financial and operational standpoint, then they can be located in an area with labor in a market that would best serve their interests.” There’s only one multilevel facility in Chicago as of now at 1237 West Division, being built by Logistics Property Company, LLC. And because of the unique challenges associated with multilevel, the concept will take time to gain traction. Even though it’s being explored, Kelly Disser said it remains to be seen whether Chicago will experience a pickup in development of these buildings. It will depend on tenant use, as well as the tenant themself, and cost and location are among many factors standing in the way.

progress in the Intermodal Center in Joliet, and McKiernan said, though they’re scheduled to be delivered in 2023, CenterPoint is already seeing competitive leasing interest. “We’re trying to stay a cycle ahead and invest throughout this period while remaining focused on the fundamentals of tenant demand, logistics and the value of reducing operating costs through logistics-advantaged real estate,” McKiernan said.

Kelly Disser

Brian McKiernan

Kyle Schott

“A lot will hinge upon LPC’s project,” Disser said. “It will be successful, but also very hard to replicate. The space is hard to come by in Chicago, and these buildings require a dense infill location that checks all boxes regarding proximity. It may prove difficult to see too many of these buildings because of land constraint.”

"Cost per square foot is much higher

As for the remainder of the year, the forecast seems to be a little uncertain. Disriptions to market financing costs are expected, and as interest rates change, according to Brian McKiernan, people are waiting to see where values reset.

operational standpoint, then they can be

“Looking at the next six months,” McKiernan said, “I’d say the first three will be uncertain. Once people see where the dust settles, we’ll have more reasonable predictability regarding buying and selling.”

for vertical building, but if it works for the tenant from both a financial and

located in an area with labor in a market that would best serve their interests." That said, CenterPoint has been focused on thinking ahead, ensuring availability of functional facilities despite the problem of limited supply. The company continues to build about two million square feet of

new product annually, and is doing so on a speculative basis, focusing less on timing the market and more on long-term core fundamentals. Two new speculative buildings of one million square feet each are currently in

Investments in logistics-advantaged properties are believed to lessen construction headwinds in terms of pricing, commodity availability and labor and supply chain issues. Similarly, Ryan Companies’ focus has been finding land positions for speculative development. While there are build-to-suit users in the market, most are gravitating toward speculative for surety of delivery. Users would rather sign a lease for a building that’s guaranteed to be delivered in reasonable time — even if it doesn’t have every element on their wish list. It’s up to companies to take the up-front risk, as there will continue to be demand for sites. Despite the market’s lasting strong numbers, there’s a large element of wait-and-see for Chicagoland. The Federal Reserve raised interest rates by 75 basis points as of July 27, the largest single-meeting rate increase since 1994, and the financial implications are still to be seen.

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Molto is developing Weber55 Logistics Park, a two- building logistics park located on 60 acres at the northeast corner of Weber Road and Taylor Road in Romeoville. Building I, a 627,840-square-foot cross-dock distribution facility, will feature 114 exterior truck docks, 40-foot clear height ceiling, 128 trailer stalls and parking for 376 cars. Building II, a 270,000-square-foot single load distribution facility, will feature 56 exterior truck docks, 36-foot clear height ceiling, 72 trailer stalls and parking for 258 cars. Located in the heart of the I-55 Corridor, the park will offer users convenient interstate access via the newly reconfigured Weber Road interchange. Completion of both buildings is scheduled for the Q2 of 2023.

I-55 (continued from page 1)

their presence or establish a new one, but for landlords? It’s a best-case scenario. For a 100,000-square-foot block of space, Colliers Principal Jim Estus is seeing landlords quote close to a whopping $10 per square foot net for immediate occupancy, and Colliers is advising willing and able clients to wait until 2023 when 4.5 million square feet of new, less expensive, and more modern product is expected to come online. The challenge lies in finding tenants who can wait — and they’re few and far between. Given the recent uptick in demand, it’s reasonable to question where the influx of perspective occupiers is coming from, as well as the reason for the submarket’s significant growth compared to those surrounding. To answer this, one might start by looking at trends in other parts of the U.S. The East and West Coasts, specifically, are experiencing the same low vacancy, but with double — sometimes triple — the rents as Chicagoland. It’s for this reason that Estus said these companies are flocking to Chicago. And not only that, but Suburban Chicago is a more friendly business climate with a strong labor supply, factors both recognizable and sought-after by outside users.

"It’ll be a bumpy road until I-80 is widened, just east of I-55. There’s also a new road into the intermodal proposed to be completed by 2025. These are necessary improvements to keep product flowing, but they’re still underway." Another I-55 trend Colliers is seeing is prospective occupiers submitting an offer to lease without first touring a facility, with no regard to rate. This is due, in part, to the higher rental rates of the East and West Coast. Properties along I-55 are considered a bargain by those coming from New Jersey or California, and companies are eager to jump at the right opportunity. Leases in Q2 ranged in size from 25,000 to 800,000 square feet, but it’s the middle market (100,000 to 600,000 square feet) that sees most submarket activity. Since multiple

tenants continue to vie for the same space, it boils down to who acts faster. Estus is already starting to see preleasing for Q1 of 2024, which is a trend that Colliers hasn’t seen before. “I-55 will bring new product, and it will likely be preleased,” Estus said. “We’re seeing a few deals now committing to buildings that aren’t started yet, and while it remains to be seen if we’ll continue to see that pattern of preleasing, it’s highly probable. The build cycle now is thirty months — six months for entitlements, coupled with a twelve-month

lead time on materials and twelve months to build.” In the meantime, with limited remaining land sites, it’s likely the submarket will move toward Plainfield. “The submarket has strong potential to move into Plainfield, where there are three large projects at play,” Estus said. “Developers here will be bringing a potential six million square feet to the market in 2024 near Ridge Road and 143rd Street, of which 1.2 million square feet is already spoken for.”

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Harbor Freight Tools, Courtesy of Cresa.

Jim Estus

Ed Lowenbaum

Cresa Managing Principal Ed Lowenbaum is seeing the same trend, but even though developers are doing what they can maintain a strict schedule, the delay in obtaining materials is still an issue, and Cresa has seen an increase of 20–40% in costs. Nevertheless, Lowenbaum said these obstacles aren’t stopping heavy hitters like Amazon, Hello Fresh, NFI and Geodis, from playing the game, along with a variety of 3PLs.

“There are quite a few 3PLs, and they handle the warehousing distribution for a wide variety of companies that don’t have their own warehousing distribution,” Lowenbaum said. “They’re likely the biggest category of space users, and those buildings are able to house various product from different clients together.” Lowenbaum also said that among other obstacles, another is the improvements being made around the submarket that will

heighten efficiency and lessen congestion in the long run but are difficult to navigate at present.

Other data for the I-55 Corridor includes:

“It’ll be a bumpy road until I-80 is widened, just east of I-55,” Lowenbaum said. “There’s also a new road into the intermodal proposed to be completed by 2025. These are necessary improvements to keep product flowing, but they’re still underway.”

• YTD Net Absorption: 7,821,755 square feet

• Q2 Net Absorption: 4,348,976 square feet

• Q2 Under Construction: 3,050,080 square feet, or nine buildings • YTD Deliveries: 1,963,227 square feet, or five buildings

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Modernization among industrial assets is crucial. Especially now By Mia Goulart, CIP Staff Writer

enants want what they want.

Industrial in Chicagoland is rapidly evolving, signaling a crucial need for market modernization among assets — especially for players with an increasingly outdated warehouse supply. More than 70% of existing U.S. industrial space was constructed before the 21st century, and one-third of the inventory is over 80 years old. How does that bode for modern needs? Not well, but from a timing and cost perspective, there’s no better time to embark on a new development project. The national construction pipeline has risen to an all-time high of 500 million square feet, and net absorption nearly totaled the same amount in 2021 alone. Yet across the U.S., market modernization faces a host of obstacles — from land constraints to a challenging regulatory and entitlements environment, labor shortages, pricing concerns, and supply chain congestion. We spoke with Newmark Research Manager Amy Binstein and Senior Managing Director Adam Marshall about Newmark’s recent report regarding modernization trends and challenges specific to Chicagoland. Last-mile delivery, to start, has had the largest adoption with occupiers in the last few years, Marshall reported, as well as developers trying to find infill locations that they can renovate or redevelop for modern distribution facilities. “There’s been a big push to find sites to redevelop for modern distribution,” he said. “These facilities tend to be smaller in scale due to restrictions and site sizes in neighborhoods that were originally developed many decades ago. For larger distribution facilities, sites that push the boundaries of traditional submarkets and will allow zoning for immediate development of industrial distribution facilities are key. These tend to be submarkets that have access to labor. We’re seeing those types of facilities being built now on a larger scale — 300,000-500,000-squarefoot facilities at a minimum.” This in mind, Newmark also shined a light on energy conservation and the type of energy being consumed. Industrial energy demand is only expected to increase over the coming decades but investing in sustainable solutions is not only environmentally wise but has the potential to maximize returns and revenue for developers and investors. Sustainability is quickly becoming a make or break for occupiers in site selection and is therefore

"For larger distribution facilities, sites that push the boundaries of traditional submarkets and will allow zoning for immediate development of industrial distribution facilities are key. These tend to be submarkets that have access to labor." another modernization trend worth considering. Data centers are huge users of electricity, for example, and in high demand in Chicago, largely due to a recent change in state legislation that provides sales tax exemption and income tax credits for users that are investing at least $250 million dollars for data centers in Illinois. This has pushed Illinois to be one of the lowest cost markets in the U.S. for data center development. “In the last 24 months, we’ve seen several high-profile, $250 million-plus new data

centers being developed in Chicago, and those facilities require very heavy power substations on site, or in close proximity,” Marshall said. Lower development cost allows for higher-cost upgrades like solar panels on a warehouse roof or on-site EV charging infrastructure. Plus, these facilities are reliably being developed, despite the limited availability of space. Microsoft recently purchased land in Elk Grove Village and Hoffman Estates; T5 purchased a spec building in Elk Grove to be converted into a data center; and

a site to accommodate three data center buildings is under contract on a location just outside of Elk Grove Village, currently owned by WGN Radio. Binstein said Meta will also expand one of its facilities near DeKalb. “The five-building complex will be roughly 2.4 million square feet, and it’s scheduled to be completed in 2023,” Binstein said. “There are a couple of new developments near Naperville and Aurora, too, however the cluster is near O’Hare.”

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Backlog blues in Chicago? That’s what Newmark is saying By Mia Goulart, CIP Staff Writer

any factors have contributed to the delay in development schedules.

• High Inflation/Interest Rates: Developers are no longer willing or able to accept the record-high construction costs amid strong but decelerating industrial demand and increased cost of capital. Some are temporarily pausing new project plans, while others are selling development sites.

This is not breaking news, nor is it surprising. The update? It’s unlikely that these challenges will subside any time soon. That is, based on a recent report by Newmark. New projects across the U.S. are now taking five months longer on average to complete, compared to 2019, causing a significant backlog in the pipeline. Every stage of the construction timeline, in fact, has been set back by multiple years of challenges, and the report stated that they’re still ever present. • Supply Chain Issues: Volatility still reigns in the construction materials supply chain, according to the report, exacerbated by continued geopolitical conflict. Lead times for roofing materials, for example, are still 30 to 50 weeks out on average.

• Labor Constraints and Community Opposition: Labor shortages, from understaffed local governments to a lack of skilled construction workers, are undermining both timely entitlements processes and building schedules. Many markets are also facing community opposition to continued warehouse expansion, which is delaying, and snuffing out, new project proposals.

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The impact of these obstacles on timelines varies by market and within market jurisdictions, but Chicago has seen the sharpest impact, with the entitlements-to-completion journey approximately 80% longer now than in 2019. Chicago has also doubled the timeline in active construction. Newmark credited this to the market’s reliance on local precast manufacturers for

George Cibula, SIOR Managing Broker

warehouse construction materials and the severe labor shortages, coupled with high demand faced by its local industry. Tenants with move-in requirements in 2022, furthermore, will continue to compete for limited supply in most markets, specifically those with a low volume of speculative development relative to the existing inventory. But it isn’t all bad news. Some occupiers wishing to build and own their facilities rather than lease may find increased opportunity with development sites put up for sale. Deliveries are also projected to increase and exceed demand into 2023, based on the same report. Welcome news after nearly two years of space scarcity, but some developer pullback is expected down the road, especially on the tailwinds of continued demand for new warehouse space.

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CENTERPOINT PROPERTIES

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Bob Chapman, Chief Executive Officer; bchapman@centerpoint.com; Nate Rexroth, Executive Vice President, Asset Management; nrexroth@centerpoint.com Services Provided: CenterPoint Properties is an innovator in the investment, development and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases and sells state-of-the-art warehouse, distribution and manufacturing facilities near major transportation nodes. Our experts focus on rail and portproximate distribution infrastructure assets. Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics and supply chain problems. With an agile team, substantial access to capital and industry-leading expertise, we provide our customers with a competitive edge and ensure their success — no matter how great the challenge.

FRIEDMAN REAL ESTATE

34975 W. Twelve Mile Road Farmington Hills, MI 48331 P: 888.848.1670 Website: friedmanrealestate.com Key Contacts: David B. Friedman, President/CEO; Scott Shefman, Executive Managing Director Real Estate Operations Company Profile: Founded in 1987, Friedman Real Estate is one of the largest privately held commercial real estate organizations in the nation. The company currently manages 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. 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 lender-focused bankruptcy, receivership and distressed asset services. All services are provided in-house, though a single point of contact, which guarantees that clients receive the most timely and efficient service available in the marketplace.

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.

VICTOR CONSTRUCTION

2000 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).

DEVELOPERS

CENTERPOINT PROPERTIES HIFFMAN NATIONAL

One Oakbrook Terrace, Suite 400 Oakbrook Terrace, IL 60181 P: 833.HIFFMAN Website: hiffman.com Key Contacts: Dave Petersen, CEO, dpetersen@hiffman.com; Bob Assoian, Managing Director of Management Services, bassoian@hiffman.com Company Profile: Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally recognized Top Workplace, Hiffman National is headquartered in suburban Chicago, with more than 265 employees nationally and an additional five hub locations and 30 satellite offices across North America. For more information, visit hiffman.com

GENERAL CONTRACTORS

KEELEY CONSTRUCTION

245 E Sidney Court Villa Park, IL 60181 P: 630.833.8600 | F: 630.833.9595 Website: keeley.com Key Contacts: Bill Keeley, President, bill@keeley.com Sean Keeley, Managing Director, sean@keeley.com Services Provided: Pre-construction, General Contracting, Renovation Services, Green Building, Design Build, and Construction Management Company Profile: As a design/build general contractor, Keeley Construction specializes in all types of new building construction including commercial, industrial, and cold storage/food service facilities as well as redevelopment and all aspects of renovation and tenant improvements of existing structures. Notable/Recently Completed Projects: Fountain Crossing 250k SF Spec – Hoffman Estates, IL; Tangent Technologies – Montgomery, IL – 925,000 SF Redevelopment of former Caterpillar Plant; Pure’s Food Bakehouse #3 – Bedford Park, IL – 65k SF of Institutional Bakery.

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Bob Chapman, Chief Executive Officer, bchapman@centerpoint.com; Michael Murphy, Chief Development Officer, mmurphy@centerpoint.com Services Provided: CenterPoint Properties is an innovator in the investment, development and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases and sells state-of-the-art warehouse, distribution and manufacturing facilities near major transportation nodes. Our experts focus on rail and portproximate distribution infrastructure assets. Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics and supply chain problems. With an agile team, substantial access to capital and industry-leading expertise, we provide our customers with a competitive edge and ensure their success — no matter how great the challenge.

CONOR COMMERCIAL REAL ESTATE

9500 W. Bryn Mawr Avenue, Suite 200 Rosemont, IL 60018 P: 847.692.8700 | F: 847.292.4313 Website: conor.com Key Contacts: David J. Friedman, President, dfriedman@conor.com; Brian Quigley, Executive Vice President, bquigley@conor.com Services Provided: Conor Commercial identifies and implements the most suitable commercial real estate strategy to yield increased returns for each real estate opportunity. With offices and seasoned real estate professionals strategically located throughout the country, the firm provides the experience and resources needed to develop and stabilize real estate developments that maximizepositive returns to investors and partners. Company Profile: Conor Commercial Real Estate is the integrated real estate development firm of The McShane Companies headquartered in suburban Chicago, Illinois with regional offices located in Dallas, Houston, Irvine and Phoenix. The firm is active on a local, regional and national basis in the development of master-planned industrial and office parks, multifamily properties, medical officedevelopments and built-tosuit projects for lease or purchase.

J U L Y /AUG UST C HIC A GO INDUSTRIA L P R OP E R T I E S

ECONOMIC DEVELOPMENT CORPORATIONS ECONOMIC ALLIANCE OF KANKAKEE COUNTY

200 E. Court St., Suite 507 Kankakee, IL 60901 P1: 815.935.1177 | P2: 815.355.4159 Website: kankakeecountyed.org OF KANKAKEE COUNTY Key Contacts: Timothy Nugent, President/CEO, tnugent@kankakeecountyed.org; Angela Morrey, Director, Marketing & Business Attraction, amorrey@kankakeecountyed.org Services/Demographic Info: The Economic Alliance of Kankakee County is a 501c6 public/ private partnership tasked with retaining industry within and recruiting industry to the Greater Chicago community of Kankakee County, Illinois. The Alliance leverages a number of business intelligence tools, providing current property availability, market data and other information on demand. Incentives: Based on location, projects may be able to take advantage of one or more of the following: Enterprise Zone, New Markets Tax Credits, Historic Tax Credits, Opportunity Zone financing, Tax Increment Financing, C-PACE financing and Special Service Area/Business District incentives. Recent CRE Activity: Multiple county-wide investments in 2021 including CSL Behring’s $83+ million, Rise Baking’s $34 million and Nucor Steel’s $8 million; 23 major investment projects and 350+ NEW jobs created. $1.6 billion in CRE investment activity in five years, Riverfront & Court Street TIF districts in Kankakee.

ECONOMIC ALLIANCE

15 WILL COUNTY CENTER FOR ECONOMIC DEVELOPMENT

203 N. Ottawa Street, Suite 100 Joliet, IL 60432 P: 815.723.1800 Website: WillCountyCED.com Key Contact: Doug Pryor, President/CEO, doug.pryor@willcountyced.com Services/Demographic Info: Since 1981 the CED has been a strategic partner for businesses looking to expand or relocate into Will County. The CED serves as the primary point of contact regarding available sites and buildings, economic data and research, project & program eligibility and analysis, and guidance and coordination with federal, state and local officials. Incentives: Guidance on Enterprise Zones, Will County Tax Abatement Program, Tax Increment Finance Districts, Opportunity Zones, Training Assistance and Energy Efficiency Programs. Recent CRE Activity: The Will County CED assisted in over 100 development projects in 2021 in a broad range of industries including automotive supply, food production, industrial control systems, chemical manufacturing, energy, entertainment, medical, pharmaceutical, lodging, distribution/TWL and durable goods manufacturing.

LAW FIRMS

LAKE COUNTY, INDIANA ECONOMIC ALLIANCE (LCEA)

GOULD & RATNER

440 W. 84th Drive Merrillville, IN 46410 P: 219.756.4317 Website: LCEA.us Key Contacts: Karen Lauerman, President & CEO, klauerman@LCEA.us; Don Koliboski, VP Economic Development, dkoliboski@LCEA.us Services Provided:The LCEA team provides economic development and site selection assistance; business expansion services; community connections with decision makers/elected officials; workforce analysis, demographics, cost comparisons and other critical information. Company Profile: LCEA is the Lake County Indiana Economic Development Organization representing 20+ communities just minutes away from Chicago. It is the one resource for developers, site consultants and company executives considering relocation or expansion opportunities in Lake County, Indiana.

222 N. LaSalle St., Ste. 300 Chicago, IL 60601 P: 312.236.3003 | F: 312.236.3241 Website: gouldratner.com Key Contact: Linsey Cohen, Chair, Real Estate Practice, lcohen@gouldratner.com Services Provided: Counsel on nearly all real estate transactions, including purchase, sale and financing of office, industrial, hotel/hospitality and residential/multifamily development, as well as commercial and retail leasing, multiparcel assemblage, tax-deferred exchanges, management agreements, construction financing, litigation and environmental issues. Company Profile: Gould & Ratner lawyers translate legal knowledge and business acumen into practical solutions that work for our clients, who include entrepreneurs, family businesses, and middle-market and Fortune 500 companies in real estate and many other industries in Chicago and nationwide.

MICHIGAN CITY ECONOMIC DEVELOPMENT CORPORATION

SARNOFF & BACCASH

Two Cadence Park Plaza Michigan City, IN 46360 P: 219.873.1211 Website: www.edcmc.com Key Contacts: Clarence Hulse, Executive Director, chulse@edcmc.com Services/Demographic Info: Michigan City has recognized $1.5 Billion in capital investment over the last 8 years, with more deals - $300 Million Multi-family projects on the horizon. We are located on Lake Michigan with easy access to I-94, I-80 and we are 1 hour drive East of Chicago. Michigan City is home to 32,000 residents with 5.6 Million visitors annually. Incentives: Waterfront Opportunity Zone, 3 TIF Districts, Facade Improvement Program, Tax based Incentives, Start Up Assistance, and Workforce Training Funds. Recent CRE Activity: Double Track project ($500 Millions), Michigan City Central Station ($80 Millions), Workforce Apartments 125 units, Waterfront Condominiums 150 Units/Boutique hotel 180 units, 32 Single Family Homes, Shady Creek Winery Expansion - 9,000 SF ($3 Millions), Sullair Hitachi Expansion – 80,000 SF ($33 Millions), Shell-Criterion Expansion ($34 Millions),GAF Expansion – 200,000 SF ($30 Millions), Burn ‘Em Brewing Expansion - ($1.6 Millions), and 30 Independent Restaurants in our Downtown.

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.

NAPERVILLE DEVELOPMENT PARTNERSHIP

22 E. Chicago Ave., Ste. 205 Naperville, IL 60540 P: 630.305.7701 Website: www.Naper.org Key Contact: Christine D. Jeffries, President, CJeffries@Naper.org Services Provided:The Naperville Development Partnership promotes the City of Naperville and its many businesses. Whether you are an existing business looking to relocate or a new company, we will take the time to show you what Naperville has to offer. Company Profile: The Naperville Development Partnership is a public / private economic development organization that promotes business interest in the City of Naperville. Our mission is to enhance the economic vitality of Naperville and maintain its outstanding quality of life. This is achieved through the retention and expansion of existing businesses as well as attracting new business to the community.

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