May June 2023 Chicago Industrial Properties

Cold Storage Sector Really Pretty Hot: Newmark Reveals Temperature-Controlled Development Pipeline at New Record

By Mia Goulart, Senior Staff Writer

To say cold storage is “heating up” would be an understatement. Chicago possesses one of the largest cold storage footprints at 12.4 million square feet—and it’s expected to keep growing, led by three primary drivers: (1) e-commerce, (2) industry consolidation and (3) aging inventory, based on Newmark’s March 2023 Industrial Insight Report.

It’s no secret that the pandemic accelerated the growth of e-commerce and last-mile operations, with many consumers turning to online grocery shopping and meal services. So much so, e-commerce grocery sales are expected to grow at a 6.5% CAGR over the next five years, outpacing the 2% expected for in-store sales.

COLD STORAGE (continued on page 6)

Class B and C and The Current Industrial Market: What You Need to Know

By Mia Goulart, Senior Staff Writer

Class A industrial buildings remain the golden child of the sector, yet middle-tier buildings are also capitalizing on today’s uncertain economy. While this may bring a momentary sense of relief to these buildings’ owners and landlords, it presents challenges for potential users.

Simply, the industrial real estate market in Chicagoland is currently experiencing a shortage of available space—particularly that of Class B and C, which among other conse-

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2023 EDITORIAL BOARD

Corey Chase Newmark

Joe Pomerenke Arco/Murray National Construction Company, Inc

Dan Fogarty Stotan Industrial

Adam Moore First Industrial Realty Trust Inc.

Ron Behm Colliers International

Adam Roth

NAI Hiffman

Mike Yungerman Opus Group

Glen Missner

The Missner Group

Dan Barrins Associated Bank

1

Cold Storage Sector Really Pretty Hot: Newmark Reveals Temperature-Controlled Development Pipeline at New Record To say cold storage is “heating up” would be an understatement. Chicago possesses one of the largest cold storage footprints at 12.4 million square feet—and it’s expected to keep growing. 1

Class B and C and The Current Industrial Market: What You Need to Know Class A industrial buildings remain the golden child of the sector, yet middle-tier buildings are also capitalizing on today’s uncertain economy. While this may bring a momentary sense of relief to these buildings’ owners and landlords, it presents challenges for potential users.

4

Industrial Flex Business Parks Booming in Chicago and Midwest Industrial real estate continues to be one of the most in-demand asset classes that is dominating the nation and headlines. Chicago is one of the country’s most critical industrial markets. 8

Demand, Sustainability and Automation: A Q&A with Prologis Chicago continues to be a magnet for REITs, especially for those seeking industrial space. Sean Olvany, VP, Market Officer – Chicago, recently weighed in. 11

MARKETPLACE

CONSTRUCTION COMPANIES/ GENERAL CONTRACTORS

ECONOMIC DEVELOPMENT CORPORATIONS

Industrial Flex Business Parks Booming in Chicago and Midwest

By Cliff Booth, Founder & Chairman, Westmount Realty Capital

Industrial real estate continues to be one of the most in-demand asset classes that is dominating the nation and headlines. Chicago is one of the country’s most critical industrial markets, an international trade hub for the Midwest, and remains a growing market for distribution networks. Despite the year starting with talks of a looming recession, inflation and federal rate hikes, the industrial market is as strong as it has ever been as the city and the region have seen historic low vacancies, growing rents and strong leasing demand for space. According to Colliers International, the Chicago industrial real estate market is demonstrating great resilience in 2023 and is one of the leading industrial markets in the nation, surpassed in importance by only the Southern California region. The city has a strong industrial market with robust demand and a current vacancy rate of 3.5%

Chicago is a vital industrial market due to several key factors, including its access to intermodal railway transportation, air freight from O'Hare airport, a high volume of national and international shipping, barge access for waterborne freight, and a densely populated area. One of the contributions to Chicago’s long-standing success is its diverse range of industries. The multi-tenant flex business park is a unique class of industrial real estate which has continued to experience sustained industrial demand. These flexible spaces have evolved to meet the escalating consumer demand for light industrial needs both in convenience and affordability. While this sector has not received the attention of traditional big-box industrial assets, the appeal of these highly accommodating multi-use spaces has continued in Chicago and markets alike.

Light industrial flex business parks are proving to be a thriving property type and a sound investment that is meeting the growing demand for flexible space. They offer several advantages as compared to high-rise office buildings and traditional big-box industrial assets, particularly when it comes to versatility. The flex buildings within these business parks can accommodate multiple uses, providing tenants with 100% pure office units, pure industrial units, lab spaces and blended-use unit offering a 50/50 mix of office and warehouse (flex space). Repositioning and converting these properties is relatively easy, which minimizes market exposure to one specific unit type or industry and allows for flexibility in space utilization.

Moreover, the ability to address tenant space needs by combining units, redesigning industrial spaces, or adding office elements provides owners with the

flexibility to accommodate fluctuations in market demands and enables them to secure a broader range of tenant demand. When a tenant vacates, the

opportunity arises to redesign the space to meet the current office-to-warehouse ratio preferences. The single-story format of these flex buildings on a large

plot of land enables the conversion of current office space into flex industrial space, accommodating the needs of various tenant types. This contrasts with traditional high-rise office spaces that do not allow for loading conversion. The single-story configuration of flex buildings is also beneficial because it is easier to combine units to create an attractive layout as tenants grow within the same location, if loading is a necessary component.

Accessibility is another key factor attracting businesses and their employees, further driving high lease-up rates. Industrial and flex business parks generally provide direct access to their individual unit entryways, allowing privacy which reduces tenant traffic and minimizes interaction which mitigates possible potential health concerns. These industrial business parks also allow owners to minimize the cost associated with providing and maintaining common area spaces such as common entryways, lobbies, bathroom facilities, mailrooms, and additional space that is unable to provide leasing returns due to needs required of the communal property design. These single-story buildings also allow tenants to provide their employees with the amenity of more immediate access parking as they are often able to do so directly or very near to their units due to the dispersion of parking availability.

The industrial flex space also benefits from additional positive impacts on reduced capital expenditures due to its convenience factor. With renovations occurring within a single business park, owners can efficiently bid out multiple jobs to a single contractor. The ability to complete renovations, improvements, or quick flex suite touch-ups like paint and carpet more easily and efficiently within a single location attracts contractors to provide more favorable quotes for bids. This approach also minimizes vendor time spent visiting multiple tenant sites, provides quick access to shared parking, and increases efficiency for property managers on site. These convenience and efficiency elements offer multiple cost-saving benefits for owners.

The town of Elk Grove Village is a prime example of a flourishing industrial market within the greater O’Hare submarket. Westmount has a tenure of both owning and operating industrial properties within this marketplace. In late 2022, Westmount sold one of these assets, Elk Grove Commerce Park. The property includes a portfolio of 21 light industrial and flex buildings spanning 757,557 square feet, and it sits directly adjacent to O’Hare International Air-

"The town of Elk Grove Village is a prime example of a flourishing industrial market within the greater O’Hare submarket. "

Elgin Commerce Park

Elk Grove Commerce Park

CHICAGO INDUSTRIAL PROPERTIES

port. It is one of the very few privately owned properties which directly borders O’Hare airport. Elk Grove Village’s strategic location and proximity to multiple highways and O’Hare make it a solid warehouse location for logistics, transportation, distribution and other flex users. Westmount owned the Elk Grove Commerce Park property for three years and at the time of sale, the portfolio was 97% leased to 107 tenants.

After the completion of the Elk Grove Commerce Park sale, Westmount owns and manages 65 industrial and flex buildings throughout Chicagoland totaling 6.9 million square feet. These buildings are in Buffalo Grove, Vernon Hills, Elgin, Wood Dale, Addison and Wheeling. Buffalo Grove Commerce Park consists of eight buildings, Vernon Hills Commerce Park consists of five buildings and Elgin Commerce Park consists of four buildings. The portfolio includes major companies such as two publicly traded automobile manufacturers, and an international salt producer, as well as smaller startups with as little as 2,000 square feet of space. The business parks and flex buildings have consistently experienced robust demand, rent growth, and higher occupancy rates. Westmount has successfully revamped the spaces it owns and is currently undertaking four office demo projects that will commence in 2023. These projects aim to offer tenants smaller office ratios and make the

units more marketable to attract and accommodate incoming tenants. By adapting to evolving market demands, Westmount has positioned these assets for long-term success and sustained high demand. As of now, these light industrial flex business parks sit at 95% occupancy.

Westmount has been active in the industrial market for more than 35 years

The origin of excellence.

and our knowledge of the industry and various markets has allowed us to make solid investments in extremely desirable asset classes in high-growth markets like Chicagoland. To date, we have built a portfolio of over 15 million square feet of industrial properties. We currently own and manage 58 buildings totaling 5.4 million square feet across the Chicagoland market, and we continue to see increased demand for industrial and

flex space in the Midwest and Chicago in particular. We know the history of the industrial real estate market and believe that its future outlook is strong for the rest of 2023 and beyond. This asset class has had a long-standing history of resilience and continues to perform well despite economic headwinds that have had a greater impact upon other asset classes.

For over 45 years, DarwinPW Realty/CORFAC International has been a leader in industrial and commercial real estate. The company specializes in brokerage, property management, investment and development services primarily in the Midwest. DarwinPW Realty’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our clients best.

Vernon Hills Commerce Park.

But that’s just one piece of the pie.

Third-party logistics companies like Lineage Logistics Holdings and Americold Logistics LLC have increased their share of the market through mergers, acquisitions and new construction, sparking competition as new and smaller users unable to attain space. And these companies are only growing in popularity as major grocery retailers continue to opt to consolidate their products within an externally-managed existing facility.

“Lineage Logistics and Americold, the two largest cold storage users in the world, account for 71% of cold storage capacity in the top twenty-five markets and therefore have a lot of control over pricing and placing, which is definitely pushing demand drivers,” said Newmark Research Analyst Jared Morzinski.

Aging inventory is also driving the need for modern functional space. The average age of cold storage facilities is 37 years, presenting challenges due to systems that generate higher operating costs and increased risk for product spoilage, according to Newmark.

The problem is that a majority of desirable buildings are occupied, and the others are what Morzinski and Newmark Senior Managing Director Corey Chase call “functionally obsolete” meaning they don’t have the capacity to handle the desired cold storage product. It doesn’t help that the current speculative market is less active, with only a handful of projects under construction or planned in Chicagoland.

Developers are unwilling to take the leap on spec cold storage for two reasons, one being expense, as the cost for building cold storage is almost triple that of a standard spec warehouse, $250–300 compared to $100, according to Morzinski and Chase.

“If you’re building at $100 per square foot, you can risk having some vacancy,” Chase said, “but if you’re building cold storage building and it sits vacant, the developer takes a much bigger hit in terms of carrying costs.”

The other reason is the uniqueness of users’ requirements. Each users’ specifications will vary, like the amount of cooler or freezer space they require. Constructing building spec would involve finding the perfect user, which is highly unlikely, especially within a feasible timeframe.

To sum it up, despite record demand, cold storage accounts for only 1.5% of the total industrial development pipeline. Specialized costly construction, high operating costs and inflexibility for potential future conversion make spec construction risky, but port-serving and strong population growth markets are driving a notable amount of activity, and

Morzinski and Chase predict that the number will jump exponentially over the next several years.

“Compared to other large cold storage markets, Chicago is slower growing,” Chase said. “That said, it’s a large market overall and we’re going to need to

supply the population with sufficient e-commerce inventory.”

The overarching national resolve to strengthen and solidify the food supply chain after the pandemic is inducing investment to instill resilience in the industry, which, according to Newmark,

will spur growth and innovation in the cold storage sector for years to come.

“It’s an exciting time for cold storage,” Chase said. “In a decade, we’ll look back in awe that the cold storage market accounted for just one percent of existing space. By that time, it could easily reach ten or fifteen percent.”

COLD STORAGE (continued from page 1)

Demand, Sustainability and Automation: A Q&A with Prologis

By Mia Goulart, Senior Staff Writer

Chicago continues to be a magnet for REITs, especially for those seeking industrial space. As for what makes the region a secure opportunity for investors, Prologis’ Sean Olvany, VP, Market Officer – Chicago, recently weighed in.

Chicago Industrial Properties: What are your current observations on the demand for logistics real estate in the Chicago market and how has this demand evolved over the past few years?

Olvany: The fever pitch seen during the pandemic has somewhat (and expectedly) normalized—but demand for logistics real estate in Chicago remains very strong. We use a number of metrics to gauge demand including the Prologis Industrial Business Indicator (IBI™). In March, the index fell to its lowest level in 2.5 years alongside overall economic uncertainty. Then, in April, the reading significantly increased to a normal expansionary market level.

Generally, the FOMO has decreased with less backup deals waiting in the wings. We are seeing less retailers and 3PLs lease space speculatively and lease negotiations times have extended.

CIP: How does the logistics industry contribute to Chicago's economy, and what are some of the key factors that influence demand for industrial space in the area?

Olvany: With one of the most diverse economies in the U.S., Chicago is often insulated from downturns in particular sectors. The size of our population, the business presence and the fact that we sit in the middle of the country all plays to our benefit. We’re also well served by a well-established manufacturing base and logistics network as well as North America’s second largest inland port and two hub airports.

CIP: Can you speak to any recent trends in building design for industrial properties, such as clear heights, sustainability features or the use of solar energy? How do these trends impact your investment strategy and leasing decisions?

Olvany: Our company is laser-focused on incorporating renewable energy and sustainability features in our properties in Chicago and across our global portfolio. We have dedicated teams creating energy efficient specifications for our construction projects. We are upgrading the steel in roof system to accommodate solar, upsize electrical service and gear for energy readiness, and ensuring that at least 50% of employee parking is EV ready.

Our customers are asking us for sustainable solutions, and we have an ambitious goal to reach net zero emissions by 2040. We are taking significant steps to reach it, including incorporating the reduction of cement and concrete in building design. We are also leveraging our physical scale and installing solar on our rooftops where and when it makes sense. In fact, Prologis is ranked No. 2 in the U.S. for onsite solar capacity.

CIP: How do you address challenges related to labor shortages and material delays when developing or managing industrial properties, and what steps are you taking to mitigate these risks?

Olvany: The Chicago market has not been impacted by labor shortages as much as others, but we are not immune. We employ technology to improve efficiencies and free up our team to focus even more on our customers. For example, we partner with SITE Technologies, a tech-based property assessment, to help manage paving.

Further, our in-house procurement team leverages our scale and network to achieve the best value. We also are selective when hiring general contractors and vendors, partnering with companies that have the right staffing and expertise to support our customers and us.

CIP: How do you evaluate the potential impact of new technology on the industrial real estate market, and what role do you see for automation and robotics in the logistics industry?

Olvany: Automation will continue to become more prevalent in logistics. More of our customers are leveraging automation and robotics in our facilities, particularly robotic material handling equipment. We recently hosted an event in our incubator space in Woodridge, Illinois, with Gideon Robotics to demo their autonomous forklifts with our customers and brokers.

Photo from Prologis’ Robot Roadshow at their facility in Woodridge, Illinois. Gideon Robotics’ robot, Trey, a self-driving forklift and Ventures investment.

Sean Olvany

"Our company is laser-focused on incorporating renewable energy and sustainability features in our properties in Chicago and across our global portfolio. "

Everyone’s talking about AI, and we believe will be a major factor in our industry in the years ahead. We already use it in forecasting and revenue management. We have only scratched the surface and anticipate this will be the next big disruptor in commercial real estate. It is now predicted automation will exist across a quarter of all warehouses by 2027.

Sustainable logistics solutions are also in high demand. Our corporate venture fund, Prologis Ventures, focuses on investments across renewable energy, sustainable construction materials, and the creation of our Mobility business. Electric trucks are coming, starting with electrifying heavy duty drayage operations. Recently, in the Chicago market, our Mobility team installed an electric fleet depot charging. The operation will have 100 Class 8 trucks with over one million annual miles electrified, resulting in 5.7 metric tons of CO2 saved annually.

CIP: Can you talk about the geographic distribution of your real estate assets and how you prioritize different regions or markets for investment?

Olvany: In Chicago, we focus on core/ infill submarkets where we have the largest customer base and are near the

highest barriers to entry—particularly O’Hare, I-55 Corridor and Central DuPage County.

The past five years, we’ve been growing our “Last Touch” portfolio—18 global urban markets with the highest income density, such as New York, Paris, Mexico City and San Francisco. In Chicago, our “Last Touch” portfolio totals more than two million square feet. Of the 12 prop-

erties, 11 of which have been acquired since December 2018.

CIP: What is your outlook for the rest of 2023, and how do you anticipate that the demand for logistics space will evolve? How will Prologis adapt to changes in the market, and what opportunities do you see on the horizon?

Olvany: We feel great about the rest of 2023 and beyond in Chicago. We be-

lieve we’ll see some cooling of demand, which may bump up vacancy a bit, but that should level out in early 2024 due to the current drop in speculative construction starts.

One metric we track is “true months of supply” (TMS), which compares all vacant spaces (existing + unleased development pipeline) to trailing net absorption. For Chicago, TMS increased in Q1 to 31 months (up five months from Q4). Even as TMS rises from trough levels, it remains very low and consistent with positive real rent growth (<50 months = rent growth). Chicago is not at risk of this rising suddenly given the limited unleased development in the pipeline and shrinking construction starts.

Rents are still rising, and we project they will continue to rise even with an increase in vacancy. We still expect double-digit rent growth this year in our core/infill submarkets.

On the acquisition side, we don’t foresee as many distressed opportunities as anticipated, but will continue to see more sale-leasebacks, covered land plays, and office campus redevelopments, which are the types of deals we are targeting.

quences, is driving up rents and making it harder for tenants to find affordable options.

This is the case across the board, but it’s especially tight in infill markets like O’Hare, I-55, Central DuPage, I-88 West and Lake County, to name a few.

In fact, across Chicagoland, 96% of all Class B and Class C buildings are currently occupied, forcing potential tenants to consider more alternatives, like paying more for Class A or expanding their geographic parameters outside of the region to better accommodate their search.

Additionally, NAI Hiffman Executive Vice President Joe Bronson said there are very few Class C options that are functional, only limiting the options further.

“When I give clients a report of spaces available, they often ask why I sent them a report of only “new” buildings,” Bronson said. “The tendency to renew leases is even stronger than usual because of this.”

Even in terms of new development, companies like NAI Hiffman and Core Industrial Realty have seen shifts in patterns of that of spec. Bronson said current interest for spec development lies with a much smaller group of buyers—and sells at a lower cost.

“We as a market have to decide if the exurbs are going to finally become just the next ring of suburbs,” Bronson said. “And if the answer is yes, will there be enough labor to support the tenants in those buildings?”

That’s just another rung on this year’s ladder of unknows and how things will play out, but it’s not necessarily a “new” issue.

Core Industrial Realty Managing Broker/Founder Noel Liston agreed it’s true that there is limited availability in lower-tier asset classes, for purchase in particular, and business owners that prefer to own versus lease are having a difficult time finding product to buy.

That said, Liston said we might start to see supply grow a bit in these asset classes in the latter half of the year, and like Joe Bronson said, geography is also something to be considered.

“In the secondary markets, we started to see some product emerge for sale, which is typically an indication that you’ll start to see other product for sale in more established submarkets,” Liston said. “We currently see some vacancy in the periphery markets, and I predict a bit more will be added to the market later this year, creating more opportunity for those that have not been able to find a building to purchase.”

The outlook for the near future revolves around the positioning of capital costs, as there remains a significant level of inactivity while people await the stabilization of rates. Investors hope for a scenario where there are no rate increases in the second half of the year and a downward adjustment to the Fed funds rate beginning in early 2024, however, whether this becomes a reality, along

with many other uncertainties of the year, remains a “wait and see” situation. The encouraging news is that supply and demand are relatively well-balanced at the moment, and the limited availability of land and fewer land purchases will result in a lower inventory of new product next year, sustaining the equilibrium between supply and demand.

“It remains a landlord’s market, but there might be equilibrium toward the end of the year where the market neither favors tenant nor landlord,” Liston said. “As for vacancy rates in the second half of this year, I don’t anticipate much change, but I remain bullish on the near future of the market overall.”

"It remains a landlord’s market, but there might be equilibrium toward the end of the year where the market neither favors tenant nor landlord. As for vacancy rates in the second half of this year, I don’t anticipate much change, but I remain bullish on the near future of the market overall."

CIP MARKETPLACE

CONSTRUCTION COMPANIES/GENERAL CONTRACTORS

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 buildouts, 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: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.

ALSTON CONSTRUCTION COMPANY

1901 Butterfield Road, Suite 1020

Downers Grove, IL 60515

P: 630.437.5810

Website: alstonco.com

Key Contact: Robert Murray, SVP/ Regional Manager, RMurray@alstonco.com, 908.966.1306

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: Project Heartland 1.5 Million SF build to suit distribution facility for Proctor & Gamble in Morris, IL. Lakeshore Manor 210 unit senior living facility in Northwest Indiana. Dynamic Foods 3PL 500,000 SF build to suit distribution and packaging facility in Wilmington, IL. Brown Deer Distribution Center 420,000SF two building speculative distribution center in Milwaukee, WI. 106,000 SF meat packaging facility in Northwest Indiana.

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 more than 35 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 warehouse, distribution and manufacturing facilities, as well as multifamily, commercial and institutional developments.

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.

Recent/Notable Project: Industry Center at Melrose Park – the construction of three speculative industrial buildings in Melrose Park, Illinois. The new development incorporates a total of 651,617 square feet.

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: Clarius Park Joliet Building #2, Joliet, IL - 906,517 sf speculative industrial facility for Clarius Partners. Commerce Park Chicago Building B, Chicago, IL - 602,545 sf speculative multi-tenant industrial facility for NorthPoint Development. Halsted Delivery Station, Chicago, IL - 112.000 sf package delivery station on a 17-acre redevelopment site for Prologis.

SUMMIT DESIGN + BUILD, LLC

1036 W. Fulton Market, Suite 500 Chicago, IL 60607

P: 312.229.4630

Website: summitdb.com

Key Contacts: Adam Miller, President, amiller@summitdb.com; Deanna Pegoraro, Vice President, dpegoraro@summitdb.com; Jon Silvers, Business Development, jsilvers@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, multifamily residential, office/tenant interiors, hospitality and institutional markets.

Company Profile: Located in Chicago’s Fulton Market and with regional offices in Tampa, FL, Austin, TX and North Carolina, Summit Design + Build has been involved in the design and construction of over 400 buildings and spaces totaling more than 10 million square feet over the firm’s 18 year history.

Notable/Recently Completed Projects: Eli’s Cheesecake (Industrial), 2217 Loomis (Industrial), 1436 W Randolph (Adaptive Reuse Hotel), 718 Main (Multifamily), Prenuvo (Medical TI), 5691 N Ridge Ave (Multifamily).

ECONOMIC DEVELOPMENT CORPORATIONS

ECONOMIC DEVELOPMENT CORPORATIONS MICHIGAN CITY

Two Cadence Park Plaza Michigan City, IN 46360

P: 219.873.1211

Website: edcmc.com

Key Contacts: Clarence Hulse, Executive DirectorEconomic Development Corporation Michigan City, chulse@edcmc.com; Karaline Cartagena Edwards, Economic Development Manager, kcedwards@edcmc.com

Services/Demographic Info: Up-to-date inventory of commercial buildings, site selection and orientation tours.

Incentives: Tax-Increment Financing, Facade Improvement Grants, Property Tax Abatements, Enterprise Zones, Revolving Loans, Job Training Programs.

Recent CRE Activity: Double Track Project: $649 Million Downtown Development reducing train travel to Chicago to 60 minutes; Michigan City Central Station: $100 Million Development with Residential & Retail Space; “You Are Beautiful:” $240 Million Mixed-Use Multifamily Development with 235-room Boutique Hotel & 150 Luxury Condos; TRG: $35 Million Downtown Workforce Housing Project; Burn ‘Em Brewing: $1.6 million expansion project with 30 new jobs

DEKALB COUNTY ECONOMIC DEVELOPMENT CORPORATION/DCEDC

2179 Sycamore Road Unit #102 DeKalb, IL 60115

P: 815.895.2711 | F: 815.895.8713

Website: www.dcedc.org

Key Contacts: Paul J. Borek, Executive Director, borek@dcedc.org

Karen K. Hoyle, Administrator, hoyle@dcedc.org

Katelyn Lancaster, DeKalb County Marketing Manager, klancaster@dcedc.org **Opportunity Unbound, countywide branding and communications program**

Services Provided: DCEDC assists investor businesses with the following services:

· Market Research

· Site/Building Selection

· Workforce Recruitment & Training, Student Internships

· Supply Chain Analysis

· Product Development Research Partnerships

· Expedited Plan/Permit Review

· Enterprise Zone Incentives.

Located 60 miles west of Chicago/O’Hare Airport on Interstate 88 along the Union Pacific RR, the economy is led by Northern Illinois University together with innovative manufacturing, distribution, health care and agricultural enterprises.

Company Profile: DCEDC is a public/private partnership working to facilitate sustainable & diversified economic growth in DeKalb County. The organization serves 16 industrial parks and over 14.5 million square feet of industrial space in 14 communities along I-88 in the center of the I-39 Logistics Corridor. This location provides congestion-free access to the central United States and Metro Chicago with convenient connections to I-80, I-55, I-94 and I-57.

VILLAGE OF HUNTLEY

10987 Main Street Huntley, IL 60142

P: 847-515-5268

Website: huntleyfirst.com, huntley.il.us

Key Contact: Melissa Stocker, Marketing & Recruitment Specialist, mstocker@huntley.il.us

Services/Demographic Info: Huntley, a northwest suburban Illinois community of greater than 28,000 residents, is conveniently located at the crossroads of Interstate 90 and IL Route 47. Proximity to the interstate and to international and cargo airports in Chicago and Rockford make Huntley an ideal location for businesses looking to escape the congestion of more populated areas while reaping the benefits of a Chicago market location. Village of Huntley staff provides comprehensive services including site selection assistance and demographic resources, visit huntleyfirst.com to start the search for your new home for business. Residential construction continues with three subdivisions actively building. Huntley is home for your business, and home to the right employees for your business.

Population In Primary Trade Area: 97,283

Incentives: TIF District, Fast Track permitting and development approval process

CRE Activity: Huntley is home to leaders in business. Join Weber, Northwestern Medicine, Amazon and many others that chose Huntley as their home for business. Hampton Inn recently opened in Huntley. A second Amazon facility is currently under construction. E-Logistics firm headquarters are underway. Speculative development is underway near the tollway. Multiple retail strip centers are in the planning phases. With land available for custom-tailored facilities, businesses seeking sites recognize Huntley as a prime location for operations.

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