Glenview’s Allstate corporate campus is on the precipice of a total transformation now that its sale has been finalized.
Reno, Nev.-based Dermody Properties completed the $232 million purchase of the 232-acre site at 2775 Sanders Road in the northern Chicago suburb, Crain’s reported. The industrial developer can begin construction on its first phase, which will include five warehouses totaling more than 1.2 million square feet that will open within a year.
The first phase of the development also involves demolishing the building that served as the insurance company’s longtime headquarters. The project’s final form will see a 10-building, 3.2 million-square-foot logistics park.
“This redevelopment project stands at the intersection of two significant and durable trends—work from home and e-commerce,” Dermody President Doug Kiersey said in a statement. He added that the conversion of the dated campus will be put to better use as an industrial park and create sustainable economic value for the community.
After Allstate agreed to sell the property to Dermody about a year ago, the village of Glenview also agreed to an incentive package for the developer as the project stands to generate around $135 million in tax revenue.
This project joins a record number of Chicago-area industrial developments currently underway. During the third quarter of 2022 some 37.5 million square feet of warehouse space was under construction in and around the Windy City, beating out the previous record of 30.1 million square feet in the second quarter of 2021, according to a Colliers report.
Dermody is building the first pieces of the project on spec, similar to around 80 percent of similar projects currently under construction in the Chicago area, per Colliers. This suggests developers in the area are forecasting ample demand for industrial space, which is counter to other U.S. markets.
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— Victoria Pruitt