1055 Sesame Street in Bensenville
The O’Hare industrial submarket is so hot that Dayton Street Partners is planning to build a 116,000-square-foot warehouse on spec.
Howard Wedren, founder of Chicago-based Dayton Street, told Bisnow the building will be erected on 6.5 acres near 1055 Sesame Street in Bensenville after an existing building on the property is demolished.
County records show Dayton Street bought the property for about $3.4 million in March.
In February, the village of Bensenville agreed to support a Cook County property tax break for the facility, records show. Thanks to the incentive, the property will be assessed at a reduced rate for 12 years before returning to the standard 36 percent assessment rate for industrial properties.
The deal with the village pegged the cost of the building at $6 million.
Work is expected to begin next month and be finished by next spring, according to Bisnow.
A report this week said surging demand has led to low vacancy rates and high rents in the O’Hare industrial submarket.
The industrial vacancy rate in the area was 4.5 percent in the first quarter, well below the 5.9 percent rate in the overall suburban market. Rents averaged around $20 per square foot, almost four times as much as the overall average for the suburbs.
Wedren told Bisnow the high barriers to entry in O’Hare favor fast absorption.
[Bisnow] — John O’Brien