HSA, Clarion Partners Break Ground on 758 KSF Chicago Warehouse
- Aug 23, 2018
The metropolitan Chicago industrial market is being prepped for a new 757,900-square-foot addition. HSA Commercial Real Estate and Clarion Partners LLC recently initiated construction of a state-of-the-art warehouse project at the 156-acre Heartland Corporate Center in Shorewood, Ill.
Sited roughly 45 miles southwest of Chicago, the new facility will occupy 46 acres of land near the confluence of Interstates 55 and 80. HSA and Clarion are developing the building on spec, with nary a concern about the absence of a prelease commitment.
“Despite the unprecedented growth and development in the I-55 corridor over the last couple years, absorption and demand have remained extremely strong, which speaks to the strategic value of the market for large warehousing and logistics firms,” Robert Smietana, vice chairman & CEO of HSA Commercial Real Estate, said in a prepared statement. “We feel very confident about a quick lease-up based on the interest we have experienced thus far for Heartland Corporate Center.” Leasing is being handled by commercial real estate services firm Colliers International’s David Bercu and Matthew Stauber, who hold the respective titles of principal and executive vice president.
Proof is in the numbers
Research from Colliers supports HSA’s assertion that additional square footage at Heartland will be well received. The second-quarter vacancy rate in the I-55 corridor decreased for the second consecutive quarter, dropping to 11.2 percent, and positive net absorption totaled more than 500,000 square feet. “While ongoing speculative development may temper the rate of improvement to the vacancy rate towards the end of the year and in early 2019, demand is expected to remain strong,” per the report.
HSA and Clarion have tapped Meridian Design Build to serve as general contractor on the new warehouse, which is on schedule to deliver in early 2019. The development will be joined by a handful of existing buildings, including a 1 million-square-foot distribution facility that counts kitchenware manufacturer Wilton Industries as a tenant.
Image courtesy of HSA Commercial Real Estate and Clarion Partners