Industrial developers have been busy since the snow melted, with 8.3 million square feet of new product under construction. Look no further than North Cook County, said JLL Senior Vice President Steve Trapp, who spoke to a packed house recently at Bisnow‘s 5th Annual Industrial Summit in Rosemont.
Take Cabot Properties and Seefried Industrial Properties’ 217,064 square-foot 5600-5750 W. Jarvis Avenue in Niles, the fourth redevelopment in the area in the past 12 months, which is already 60 percent pre-leased. Industrial manufacturer Thermal Care just signed a 135,277 square foot pre-lease at the property, which is represented by Trapp, JLL Senior Vice President Kurt Sarbaugh and JLL Vice President Robin Stolberg.
“Users value North Cook’s modern industrial product for its access to a talented, highly educated workforce.” Trapp said. “They’re especially focused on proximity to the Edens and Tristate as gateways to the greater Chicago area customer base they serve.”
The Chicago area industrial market’s future will be most profoundly affected by changes in supply chain, Trapp said. E-commerce users are focused on the “last mile” of delivery to consumers and are adding locations around Chicago to service a population that is placing increasing amounts of mobile orders with the expectation of same-day delivery.
Bisnow panelists also included Venture One Real Estate’s Mark Goode, First Industrial Realty Trust’s Jojo Yap, Brennan Investment Group’s Michael Brennan and Prologis’s Carter Andrus. The group noted the rise of the “mega-deal” as the global industrial market consolidates, such as Blackstone’s sale of IndCor Properties to Singapore’s GIC Pte and the Prologis acquisition of KTR Capital Partners.
As the world becomes more condensed and connected thanks to these deals and a more technology-friendly supply chain, the most successful industrial product will provide easy access to labor, like North Cook, and modernized facilities to accommodate the continued reshoring and digitization of manufacturing, Trapp said.
Some fun facts about Steve Trapp: He likes Nomi for closing dinners, you’ll find him watching “Shark Tank” on Friday nights and he’s a die-hard Foo Fighters fan.