NAI Hiffman, the largest independent real estate services firm in the Midwest, today announced it represented Target Marketing Systems in a 154,000-square-foot lease at 270 Madsen Drive in the Bloomingdale Corporate Center, an industrial business park in Bloomingdale, Ill. The company, an importer and wholesale distributor of furniture products, will expand and relocate its U.S. headquarters to the building, vacating its current 101,000-square-foot space in nearby Carol Stream.
Mark Moran, executive vice president of NAI Hiffman, represented Target Marketing Systems in the transaction, which fills the entire property. Jones Lang LaSalle represented the owner, Barings Real Estate Advisers.
“Target Marketing Systems sought a second, overflow location, but after we completed a comprehensive review of its business operations, we advised the company of the cost savings and efficiencies gained by a complete relocation and expansion into one new space at Bloomingdale Corporate Center,” said Moran. “The scheduled tariff increases are a major concern for our distributor clients that are importing goods from China, so part of our strategy is to help them offset future expenses with long-term planning that streamlines operations to save money.”
Under the terms of the long-term lease, which will commence at the beginning of 2020, Barings, which purchased the property in 2017 on behalf of an institutional client, will complete a buildout of office space and add enhanced lighting and charging stations to the property’s warehouse.
“Target Marketing System’s lease is representative of the many mid-sized deals that have kept Chicago’s industrial vacancy rate hovering at five-year lows and have made year-to-date absorption rise to an impressive 15.4 million square feet – up 37.4% from the first three quarters of 2018,” said Moran.
Chicago’s overall industrial vacancy rate ended the third quarter at 5.63% – up slightly from the five-year low of 5.43% seen in the second quarter – amid robust construction, with 7.3 million square feet of speculative warehouse product added to the market during the period. Vacancy was lower in the Central DuPage submarket, which includes the Bloomingdale Corporate Center, which posted a rate of 4.71% last quarter, reflecting its accessible location near O’Hare International Airport and several expressways, including Interstates 355 and 290, as well as the Illinois Route 390 Tollway.
Built in 2017 and situated on 9.84 acres, 270 Madsen Drive features 30-foot clear heights, 15 truck docks (expandable), one drive-in door and 85 parking spaces. The property is centrally located for distribution to 9.5 million end users throughout the Chicago area, and is in proximity to a highly skilled labor force in the western suburbs.
About NAI Hiffman:
NAI Hiffman is the largest independent real estate services firm in the Midwest, providing leasing, management, tenant representation, capital markets, project management and marketing services for institutional and private owners and occupiers of commercial real estate. It currently leases and manages an 89+ million square foot portfolio of more than 700 commercial properties throughout the region, with a primary focus on metropolitan Chicago. With more than 200 employees, NAI Hiffman is the Chicago-area representative for NAI Global, the world’s largest managed network of real estate service providers, with more than 6,700 local market professionals managing more than 380 million square feet of property. NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific. For more information, please visit www.hiffman.com.