The massive O’Hare submarket distinguishes itself from other suburban submarkets with its proximity to the O’Hare International Airport, convenient public transportation, and easy access to downtown Chicago. It is located to the west of the airport (north and east of I-290, and south of I-90), and runs north into Des Plaines (to the west of I-294). The buildings here are largely comprised of 1970s vintage, with 18’-20’ foot clear heights, low parking ratios, and limited dock-loading capacity. Nonetheless, air-freight tenants pay a premium for properties with immediate access to the airport. The modern high-ceiling spaces that exist within the submarket can be found in the industrial parks to the west of the airport in Elk Grove Village and along the southern edge of the airport property in Bensenville and Franklin Park (just north of the Canadian Pacific Bensenville intermodal yard). In addition to durable- and nondurable-goods wholesalers, truckers, air couriers, and logistics firms, several companies here are engaged in HVAC and plumbing construction and repair, food and beverage making, paper products, commercial printing, plastic products, fabricated metals, motors and generators, printed circuit boards, and automotive repair.
Vacancies remain low on the heels of some strong absorption, which, for the most part, has been consistently strong since 2012. Several projects are under construction here, and 2018 was a heavier year for deliveries than 2017 was. Highlighting new development is the Elk Grove Technology Park, which broke ground in the spring of 2018. The park will include nine warehouses ranging from about 75,000 to 250,000 SF which are designed to attract data centers and high-tech manufacturers. Even with an uptick in development, vacancies should have the opportunity to remain tight in the coming quarters barring any large move-outs. Rents continue to show strong growth patterns, and asking rent levels are nearly 20% higher than their pre-recession peak. Investment volume set a cyclical high last year, while pricing continues to climb.
Experience / Presence in the Market
Andrew Maletich, Matt Garland and Dustin Albers are a team of industrial brokers who focus on buyer, tenant and asset representation. They offer over 13 years of combined experience in the business. Their combined portfolio of 264 transactions totals over $133 million in value.
Some of their notable clients include: ML Realty, Plymouth, Dayton Street Partners, High Street and FedEx