HSA Commercial Real Estate’s Tim Thompson, who is responsible for the project leasing at Delany Commerce Center, recently published an article in the Illinois Real Estate Journal outlining the benefits of locating Lake County and growth that is occuring as a result.
In terms of size and available buildings, the 47-million-square-foot northern Lake County industrial market is as tight as any Chicago submarket such as Central DuPage, I-55 and I-88. The vacancy rate is roughly 8 percent, down from 10 percent a year ago and from almost 13 percent in the fourth quarter of 2010. The vacancy rate is 8.3 percent for the 1.1 billion-square-foot industrial market throughout Chicagoland, which means that Lake County is keeping pace with the rest of the region.
The northern Lake County industrial market has limited room to grow due to the lack of available land for new industrial development. The industrial corridor there is primarily composed of second- and third-generation warehouse buildings that don’t have the efficient, high-cube facility design that modern tenants’ desire. However, with a burst of new leasing activity driving vacancy rates to historic lows, development is certainly on the rise in northern Lake County for the first time in a long time.
Much of this leasing activity has been confined to Waukegan, Libertyville, Gurnee and other suburbs north of Illinois Route 60, where several users have signed leases of 100,000 square feet or larger. Unlike the more developed and mature market to the south, the area north of Route 60 has seen more new construction in recent years, attracting larger users that are looking for top-tier space.
To read the full article, please visit the Illinois Real Estate Journal website.