Chicago Industrial Portfolio Changes Hands
- Jan 30, 2017
Chicago—Brennan Investment Group LLC has acquired a 30-building industrial portfolio totaling more than 2 million square feet, in the Chicago metropolitan area.
The portfolio consists of buildings located primarily in the O’Hare, Near North and Central DuPage submarkets.
“The Chicago industrial market continues to benefit from strong tenant demand, limited supply by historical standards and accelerating rent growth,” Scott McKibben, Brennan’s chief investment officer & managing principal, said in a prepared release. “As of the fourth quarter of 2016, the Chicago metropolitan market reached a 20-year high occupancy level of 96.1 percent, driven, in part, by positive absorption of over 19 million square feet.”
Those impressive figures mark Chicago’s 26th-consecutive quarter of positive absorption.
According to McKibben, the infill characteristics of the portfolio will enable the company to capitalize on supply and demand dynamics, and execute its value add strategy.
“Chicago’s infill submarkets, in particular, have been great beneficiaries of heightened tenant demand,” he said. “Strong, consistent demand, combined with limited new supply, has contributed to robust rent growth in Chicago’s infill submarkets, outperforming both regional and national rent growth averages.”
According to a recent market report by Colliers, the O’Hare submarket is much in demand among investors and tenants. The vacancy rate in the area has been on a steady decline for the last 12 quarters, and positive absorption has been the norm for six consecutive quarters.
Earlier this month, Brennan Investment Group sold its newly developed industrial facility in Des Plaines in the O’Hare submarket.