3M inks 410K sf lease renewal for DeKalb distribution center

Renewal among one of Q4’s biggest industrial deals in the state

Chicago /
Nov.November 10, 2021 02:14 PM
3M inks 410K sf lease renewal for DeKalb distribution center

Modiv CEO Aaron Halfacre and 1211 Fairview Drive DeKalb, Illinois (Modiv)

Industrial giant 3M signed a 12-year lease renewal at a three-building distribution center in Illinois, marking one of the largest industrial lease transactions in the state this quarter.

The lease at the 410,00-square-foot building located at 1211 Fairview Drive in DeKalb, 60 miles west of Chicago, will start in August 2022 when the current agreement expires, according to the landlord, Modiv, a Newport Beach, California-based commercial real estate crowdfunding platform.

The industrial conglomerate’s long-term lease comes as the pandemic-fueled e-commerce market is rapidly expanding, pushing vacancy rates for large warehouses down to a record-low of 4.4 percent in the third quarter. Developers are looking to capitalize, with around 27.8 million square feet of industrial space in the pipeline — more than double the space built in 2020.

There were five deals over 500,000 square feet signed in the third quarter, led by Amazon’s 1.2 million-square-foot lease commitment in Huntley for a build-to-suit development, according to NAI Hiffman. U.S. Medical Glove inked the largest lease in the second quarter for nearly 1 million square feet at a former Caterpillar manufacturing plant in Montgomery, about 40 miles southwest of Chicago.

The distribution center, built in 2007 as a build-to-suit industrial property, is one of the three buildings that serves to store and export 3M products across the world, to markets including Latin America, Africa and the Middle East. Two other 3M warehouses are located next to the distribution center at Fairview Drive.

The property landlord Modiv owns a mix of 38 industrial, office and retail buildings across the country including California, Nevada and Texas. This week, the company announced plans to go public next year.





    Related Articles

    arrow_forward_ios
    1585-1705 S Waukegan Road with CEO of Link Luke J. Petherbridge (Loopnet, LinkedIn)
    Blackstone subsidiary pays $150M for suburban Chicago industrial properties
    Blackstone subsidiary pays $150M for suburban Chicago industrial properties
     4300 South Brandon Road and Jeff Bezos (LoopNet, Getty)
    Amazon leases 1M sf distribution center in Joliet
    Amazon leases 1M sf distribution center in Joliet
    1101 Arnold Street (Google Maps)
    KKR buys Chicago Heights warehouse for $28M
    KKR buys Chicago Heights warehouse for $28M
    A rendering of the proposed Fox Valley Commerce Center (Geneva Illinois, iStock)
    More than 1M sf of warehouses proposed near DuPage Airport
    More than 1M sf of warehouses proposed near DuPage Airport
    Walton Street Capital's Eric Mogentale, Jeffrey Quicksilver, Robert Bloom and Richard Ratke with Woodland Hills with 21200 Victory Boulevard in Woodland Hills (Walton Street Capital, Google Maps)
    Chicago buyer for Woodland Hills manufacturing complex
    Chicago buyer for Woodland Hills manufacturing complex
    A new 151,000 sf industrial facility in suburban Chicago (Conor Commercial Real Estate)
    Suburban Chicago industrial site fully leases 151,000 square feet
    Suburban Chicago industrial site fully leases 151,000 square feet
    Idaho cold storage developer seeks tenants for first industrial project in suburban Chicago
    Idaho cold storage developer seeks tenants for first industrial project in suburban Chicago
    Idaho cold storage developer seeks tenants for first industrial project in suburban Chicago
    The industrial building on the six-acre property at 1111 West 35th Street (CBRE Deal Flow, iStock)
    Six-acre industrial property on Chicago’s South Side hits the market
    Six-acre industrial property on Chicago’s South Side hits the market
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...