One of the last remaining infill development sites in DuPage County has been bought, with its new owners planning a major industrial project on the land.
Chicago-based Logistics Property Company has picked up 15 acres in northwest suburban Addison with plans to develop 275,000 square feet of warehouse space on the site, the company said in a press release.
The land assemblage sits at the southeast corner of Swift Road and Lake Street in Addison. A spokesperson for Logistics Property Company would not confirm the sellers of the land, nor would they confirm a sales price. The sale does not appear to have been recorded in property records.
Logistics Property Company has plans to build on the site two industrial buildings totaling 275,000 square feet, the firm said in a press release. Work will begin soon and the building are expected to come online in the second quarter of 2020.
The warehouses will be built on spec. But in one of the hottest sub-markets in an on-fire Chicago industrial sector, Logistics Property should have little problem finding tenants.
Thanks to its proximity to O’Hare Airport, the northwest suburbs have seen a swell of industrial activity, leaving available land at a premium. Vacancy in Northeast DuPage County is at 3.1 percent, the lowest rate on record, Doug Pilcher, director of brokerage services at Cushman & Wakefield, said in a statement.
“There has not been an industrial speculative development in Addison for over 10 years, primarily because you can’t find the land,” said Pilcher, who will lease the project.
It’s not just the O’Hare area that has seen an explosion in industrial activity. The market’s overall vacancy stodd near 6 percent earlier this year, the lowest rate in 18 years. Developers are working overtime to fill the demand, with over 12 million square feet of new industrial space expected to come online this year.
Logistics Property Company is certainly adding to the construction pipeline, with six local projects in the works.
The firm began work earlier this year on two warehouses totaling 900,000 square feet in south suburban Country Club Hills. Logistics Property Company also acquired a McKinley Park industrial site with plans to build a 137,000-square-foot “last mile” shipping warehouse.