The City of Chicago has closed one of the largest industrial lease transactions in the South Side this year, renewing a 427,000-square-foot lease at a Pullman industrial complex.
Landlord Industrial Realty Group inked the city to the extension at 900 East 103rd Street, city records show. The complex is composed of 225,500 square feet of garage and warehouse space, and 7 acres of vacant land used by the Department of Streets and Sanitation and the Department of Transportation.
The city originally signed a lease for the property in late 2007. The lease has been amended eight times. The latest renewal runs through June 30, 2026.
The annual rate base rent for the lease is $2.26 million for the first year, rising to $2.43 million for the fifth year, records show. The deal pencils out to $5.30 per square foot for the first year and $5.68 for the fifth year.
The transaction comes as the Chicago industrial market remains one of real estate’s few strong performers. Tenants are said to be engaging in bidding wars, with companies like Amazon and Walmart fueling a record 26.2 million square feet of new leases in the first half of the year. Developers are looking to capitalize, with 57 industrial buildings totaling 30.1 million square feet — an all-time record — under construction in the city at the end of June.