By: Ryan Ori, Crain’s Chicago Business – Ridge Development plans to build a 271,200-square-foot warehouse in Bartlett, following one of the best years ever for local industrial landlords. Chicago-based Ridge and investment partner Diamond Realty Investments plan to break ground this month on the warehouse at 1331-1337 Schiferl Road in Brewster Creek Business Park in the western suburb, according to Ridge.
The Ridge venture is building the warehouse on speculation, or spec, without any commitments from tenants, and it will be completed in September, said Ridge Senior Vice President Darcie Fankhauser. Ridge hopes to fill the building with one or two tenants, but it can accommodate as many as four, she said. “There’s a lack of supply from 100,000 to 300,000 square feet in that area, north DuPage County,” Fankhauser said. “We’ve been seeing a decent amount of interest considering it’s early in the year and we haven’t even started digging.” Diamond is the real estate investment arm of Japan’s Mitsubishi Corp. Ridge is the industrial development arm of Houston-based Transwestern Development. This is their first project together. The venture bought the 14.2-acre development site from Elmhurst-Chicago Stone for almost $2.6 million on Jan. 19, according to DuPage County records. Brewster Creek Business Park is just east of State Route 59, accessible to interstates 290 and 355. Building on spec is riskier than developing a building that has been pre-leased, but it’s not uncommon when it comes to industrial development, especially in the current market. The Chicago-area industrial vacancy rate fell to its lowest level since 2001 at the end of 2015. In another sign of the industrial market’s strength, sales volume in the area topped $4 billion in 2015, an all-time high, according to New York-based research firm Real Capital Analytics. Developers completed 8.4 million square feet of spec industrial projects in last year, the most since spec development totaled 13.4 million square feet in 2008, according to Seattle-based Colliers International. “Vacancy is the lowest it’s been in years, which helps support the numbers for doing new development,” Fankhauser said. “Developers have been cognizant about getting too far out ahead of their skis. Development in this cycle has been pretty disciplined, and demand has been strong.” Ridge already has capitalized on strong industrial demand, completing a 1.7 million-square-foot facility for French tire manufacturer Michelin last year in Wilmington, near Joliet. It was the largest build-to-suit industrial development in the Chicago area since 2006. It is also seeking tenants to fill about 750,000 square feet it is developing on spec in Wilmington, Fankhauser said.
The State of the Village Address touched on a number of topics including positive Village Board relations, the functions and services of the Village’s 6 Advisory Committees, Lombard’s new Economic Incentive Agreement and its positive influence on development, ongoing commitment to communication and transparency, the high standards of the Village’s Police and Fire Departments, and budget concerns regarding the State of Illinois’ potential cuts that threaten to divert $2.3 million of Village funds. Village President Giagnorio highlighted long range budget concerns due to unfunded State mandates. “The truth is, that there’s a lot of hard work ahead, but the important thing is that we’re not ignoring it,” said Giagnorio. “We’re choosing to be responsible and to proactively identify solutions, and we will. We are not a ‘kick the can down the road’ kind of Board. We are working to solve our long range problems now because it’s the right thing to do. It’s the responsible thing to do.” The full text of the 2016 State of the Village Address may be viewed here. The address will be run on Lombard Comcast Channel 6 and AT&T Uverse Channel 99 on Sundays, Tuesdays and Thursdays at 6:30 p.m., on Mondays, Wednesdays and Saturdays at 1:00 p.m., and Fridays at 11:00 a.m., throughout March.
Here is the economic indicators report for the fourth quarter of 2015.
Sales Tax Receipts
DuPage County sales tax receipts were $359 million in the third quarter of 2015, compared to $339 million in the third quarter of 2014. This is an increase of 5.7%. Sales tax receipts are reported on quarter in arrears, compared year-over-year to accommodate seasonal changes.
The unemployment rate rose to 4.5% in the fourth quarter of 2015, compared to 3.9% in the third quarter of 2015. DuPage County has the lowest unemployment rate in the region, and also lower than both the State of Illinois at 5.9% and the U.S. at 4.8%.
The office vacancy rate dropped to 16.1% in the fourth quarter of 2015 compared to 16.2% in the previous quarter and 17% at the same time last year. The industrial vacancy rate also declined in the fourth quarter of 2015 to 5% from 5.4% in the previous quarter. The industrial vacancy rate in DuPage County continues to experience an almost continuous five-year decline. Click here to view the full report.
LOMBARD, Illinois — The Village of Lombard’s Community Development Department recently launched an online informational series about the process of opening a retail store in Lombard and the Village’s role in business attraction and retention.
The series, titled From Ground Breaking to Grand Opening: Retail in Lombard, features separate informational pages discussing site location factors, zoning and costs, Village involvement, and business retention. “Recently, with so many new businesses opening here in Lombard, people are curious about what’s going on behind the scenes,” said Lombard’s Assistant Director of Community Development Jennifer Ganser. “From the sidewalk, it can be hard to tell what’s going on when a business is under construction. We’re happy to be able to provide this useful information to anyone interested in learning more about new businesses in Lombard, and the Village’s role. Any time we can answer questions for our residents, we’re glad to do so.” The series supports the Village’s commitment to fostering positive relations in the development community, and maintaining transparent communications with residents. To view the full series, visit villageoflombard.org/retail. This 5 part series will be shared out via the Village’s weekly e-newsletter. To sign up visit villageoflombard.org/notifyme. For more information contact Jennifer Ganser at (630)620-5717
The nation’s electric power grid is becoming more complex. As the system incorporates more sources of renewable energy, such as solar and wind power, utilities need new ways to manage it more efficiently. The U.S. Department of Energy’s (DOE’s) Argonne National Laboratory is responding to that need. Continue reading →
Moderate economic growth with low interest rates, punctuated with bouts of pessimism and volatility—the factors that have characterized the world economy for the past few years—are likely to continue in 2016, supporting moderate growth in commercial rents and investment sales volume globally, according to CBRE Group, Inc.’s 2016 Global Real Estate Market Outlook, released today. Continue reading →
Molex, LLC will bring its deep expertise and wide range of solutions for the medical industry to MD&M West, February 9 – 11, booth 1746. Through its ongoing investment in research and development, as well as its strategic acquisitions and partnerships, Molex has built an extensive portfolio of solutions that medical original equipment manufacturers (OEMs) can integrate into their groundbreaking healthcare devices in diagnostic, therapeutic and patient monitoring applications. Molex remains committed to designing and manufacturing solutions that move the medical industry forward, while containing costs and keeping patient care and safety at the top of the list. Continue reading →
AT&T today announced that it has added 1 million additional business customer locations to its fiber network since 2012 when the company began its aggressive fiber expansion program. The expansion helped extend the AT&T U.S. fiber network another 76,000 route miles, bringing the total to nearly 500,000. AT&T offers business customers high-speed Internet products on its fiber network in every major metro in the company’s 21-state footprint. Continue reading →
The DuPage County Board announced recently the County has retained its AAA bond rating, the highest possible, during recent reviews with Fitch Ratings and Standard & Poor’s (S&P).
County Board Chairman Dan Cronin said the AAA bond rating is especially significant when many government entities are struggling with large deficits or unpaid obligations. This recognition will give the County access to lower interest rates, which in turn provides excellent value for residents.Continue reading →