CHICAGOLAND INDUSTRIAL MARKET REPORT · 6 9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018...

THIRD QUARTER 2017

9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018 | 773-355-3000 | www.lee-associates.com

User and Tenant Demand Decline

LEE-D STORY

145 S. Pinnacle, Romeoville: 469,964 SF Available For Lease with 10,734 SF Office

Owned by

After seeing many positive signs emerge in the second quarter, the Chicago industrial market lost momentum in the third quarter. Available supply and vacancy increased, sale and lease volume fell, and absorption–although positive–fell by half.

Moving into the last quarter of 2017, activity is expected to pick up slightly. Vacancy is also expected to increase due to the number of speculative projects scheduled to be delivered by the end of the year.

3Q Highlights

• Overall vacancy rate reported at 6.6%

• There is still a large amount of construction projects underway.

• Speculating construction projects outpaced build-to-suit deliveries.

CHICAGOLAND INDUSTRIALMARKET REPORT

FEATURED PROPERTY OF THE QUARTER

THIRD QUARTER 2017

9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018 | 773-355-3000 | www.lee-associates.com2

CHICAGOLAND INDUSTRIALMARKET STATISTICS

STATISTICAL HIGHLIGHTSChicago’s third quarter vacancy rate measured 6.55 percent – a 10-point basis increase from the 6.46 percent posted in the second quarter. The increase was driven largely by sluggish leasing and sale activity.

The Chicago area’s available space increased to 84 million square feet in the second quarter, up 2 percent from the second quarter level of 82 million square feet.

The Chicago Market experienced slower leasing and sale volume which resulted in a positive 4 million square feet net absorption in the third quarter. A disappointing result when compared to the positive 9.8 million square feet net absorption reached in the previous quarter.

Page Submarket Industrial Base Available Inventory Vacancy YTD New SF

Delivered Under

Construction 3q17 Net

Absorption YTD Net

Absorption

6 Central Du2,260,613 502,626 2.26% - - 126,758 26,668

8 Chicago North 71,555,265 5,204,982 7.27% 40,700 155,907 (253,311) 11,470

10 Chicago South 112,199,872 8,677,796 7.73% 556,070 335,637 335,767 1,342,893

12 Fox Valley 37,683,861 2,261,866 6.00% 446,473 14,250 52,263 139,251

14 I-39 Corridor 30,220,842 1,161,824 3.84% - - - 10,000

16 I-55 Corridor 95,447,122 10,398,539 10.89% 3,404,844 1,825,612 (690,117) 2,048,930

18 I-57 Corridor 32,806,486 2,563,420 7.81% 1,903,665 - (696,540) 1,193,475

20 I-88 Corridor 65,015,384 3,816,042 5.87% 954,720 458,779 750,164 1,530,320

22 Joliet/I-80 Corridor 83,886,861 5,339,777 6.37% 5,826,839 5,607,374 290,888 3,679,059

24 Lake County 77,100,704 5,966,615 7.74% 563,425 19,000 152,752 763,135

26 McHenry County 28,615,034 900,626 3.15% - - 130,093 1,082,867

28 North Cook 37,393,686 1,492,091 3.99% 135,650 236,912 22,004 64,600

30 North DuPage 63,840,684 4,699,035 7.36% 1,256,153 323,154 363,936 669,881

32 North Kane 36,218,109 3,142,138 8.68% 56,250 - 271,970 (5,649)

34 Northwest Cook 46,476,256 2,500,647 5.38% 56,297 304,804 133,536 675,316

36 Northwest Indiana 46,139,677 1,911,835 4.14% 80,000 - (55,300) 92,967

38 O'Hare 99,351,502 5,603,811 5.64% 186,117 329,737 1,144,804 233,646

40 Rockford Area 56,607,414 2,409,771 4.26% 557,844 - 210,644 555,605

42 South Cook 85,187,313 3,856,347 4.53% 418,000 - 1,213,362 2,052,403

44 Southeast Wisconsin 57,732,982 3,260,673 5.65% 1,632,123 609,430 120,000 1,290,687

46 Southwest Cook 27,648,644 2,526,373 9.14% - 172,000 84,553 252,995

48 West Cook 69,499,859 5,851,077 8.42% 891,539 99,000 345,712 1,977,910

TOTALS 1,282,888,170 84,047,911 6.55% 18,966,709 10,491,596 4,053,938 19,688,429

3

THIRD QUARTER 2017

Lee & Associates of Illinois | Industrial Market Report | 3q2017

CHICAGOLAND INDUSTRIALSUBMARKET MAP

Nine Chicago-area submarkets experienced a third quarter increase in vacancy rate from the previous quarter. The Joliet/I-80 area and I-55 submarkets had the highest increase of 1.9% each, while South Cook submarket achieved the highest reduction with 1.2%.

LakeMichigan

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4 9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018 | 773-355-3000 | www.lee-associates.com

Even though 13 of the 22 submarkets experienced a vacancy rate decrease from the last quarter, the overall Metropolitan Chicago rose slightly from 6.46 percent to 6.55 percent. The most dramatic increase occurred in the I-80 / Joliet area where the vacancy rate jumped from the second quarter rate of 4.41 percent to 6.37 percent.

The amount of available supply in the Metropolitan Chicago industrial market rose by 1.6 million square feet in the third quarter, reaching 84 million square feet. This increase can be attributed to the amount of industrial product that was returned to the market coupled with poor leasing and sales activity.

Construction completions totaled 6.2 million square feet during the third quarter. Speculative projects continued to drive all construction-related activity in Chicago.

The Metropolitan Chicago Area third quarter net absorption of positive 4.1 million square feet was disappointing after the positive 9.8 million square feet posted in the second quarter. Weak sale and leasing volume was the primary cause.

The I-55 Corridor reported the lowest net absorption with negative 664,000 square feet, whereas the South Cook submarket experienced the highest level with positive 1.2 million square feet.

Third quarter tenant demand of 5.6 million square feet marked a 23.4 percent decline from the second quarter level of 7.3 million square feet. Sale activity totaled 1.9 million square feet, significantly lower than the 2.8 million square feet registered in the second quarter.

Key StatsIndustrial Base 1,282,888,170

Vacancy Rate 6.55%

YTD New SF Delivered 18,966,709

SF Under Construction 10,491,596

Q3 Net Absorption 4,053,938

YTD Net Absorption 19,688,429

0%1%2%3%4%5%6%7%8%9%10%

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Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Net Absorption Vacancy rate

Net A

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Vacancy & Absorption

The sizable amount of new space being delivered will likely result in vacancy rate increases in certain submarkets.

THIRD QUARTER OVERVIEW

CHICAGOLAND MARKET

Lee & Associates of Illinois | Industrial Market Report | 3q2017 5

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 5,414,471 5,683,051 6,363,699 3,650,645 8,822,493 6,184,671Under Construction 14,293,812 17,528,967 18,363,520 17,732,792 16,447,558 10,491,596

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

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735

423

199

122

130

0 100 200 300 400 500 600 700 800

20k to50k

50k to100k

100k to150k

150k to200k

200k &Up

Chicago South10%

I-55 Corridor12%

West Cook7%

Lake County7%

O'Hare7%

Others57%

Chicago South I-55 Corridor West Cook Lake County O'Hare Others

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold

Leased & SoldConstruction

Available by SubmarketAvailable by Size

Notable Lease TransactionsAddress Size Type Landlord Tenant

1401-1465 W. Normantown Rd., Romeoville 716,318 Renewal Heitman, LLC Kimberly Clark Corp.

5750 W 118th St., Alsip 378,262 New Sublease Berry Plastics Corp. Richwill Enterprises

150 E. Crossroads Pkwy., Bolingbrook 352,338 New Liberty Property Trust Samsung

860 W. Crossroads Pkwy., Romeoville 339,043 Expansion Prologis LeSaint Logistics

11859 S. Central Ave., Alsip 263,840 New / Renewal DRA Advisors, LLC First Logistic Management Services, LLC

Notable Sale TransactionsAddress Size Type Seller Buyer

4 Building Portfolio 491,010 Investment Bridge Development Partners Morgan Stanley

10501 Seymour Ave., Franklin Park 367,389 Investment DB RREEF Morgan Stanley

600 Eagle Dr., Bensenville 313,102 User Prologis Amtab Manufacturing Company

966 Corporate Blvd., Aurora 238,604 Investment Panattoni Industrial Property Trust

3500 W. 127th St., Blue Island 157,800 User G&W Electric Company Project One Auto Sport

Lee Transactions in RED

CHICAGOLAND MARKET


Key StatsIndustrial Base 22,260,613

Vacancy Rate 2.26%

YTD New SF Delivered 0

SF Under Construction 0

Q3 Net Absorption 126,758

YTD Net Absorption 26,668

0%

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3%

4%

5%

6%

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20.0

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120.0

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Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

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th

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SF) VacancyRate

5200 Thatcher Road, Downers Grove70,000 SF (Divisible) For Sale or Lease



Higher tenant demand during the quarter forced Central DuPage’s third quarter vacancy down to 2.26 percent. This represents a 57-basis-point decrease from second quarter’s rate of 2.83 percent.

Central DuPage’s vacancy rate benefited from steady tenant demand coupled with a minimal amount of space returning to the market.

Central DuPage’s available industrial supply fell approximately 130,000 square feet from the second quarter level of 629,000 square feet to 503,000 square feet in the third quarter.

For the fourth consecutive quarter, no new development was delivered to the Central DuPage submarket.

Three lease transactions were signed in the third quarter totaling 78,000 square feet. Sale activity fell to just 90,000 square feet in the third quarter, a 36 percent drop from the second quarter total of 140,000 square feet.

Third quarter tenant and user demand were a principal factor in Central DuPage’s net absorption of positive 127,000 square feet, a vast improvement from the negative 15,700 square feet posted in the second quarter.

CENTRAL DUPAGE

Central DuPage Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 15,072 0 0 0 0Under Construction 15,072 0 0 0 0 0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

7

4

0

0

0

0 1 2 3 4 5 6 7 8

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpElmhurst

43%

Downers Grove 27%

Lombard 10%

Vi l la Park9%

Oakbrook Terrace 7%

Others4%

Elmhurst Downers Grove Lombard Villa Park Oakbrook Terrace Others

020,00040,00060,00080,000

100,000120,000140,000160,000180,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold


Available by CityAvailable by Size

CENTRAL DUPAGE


1051 N. Main St., Lombard 25,932 New Sparrowhawk LLC Exide Technologies

950 Oaklawn Ave., Elmhurst 22,006 New Darwin Realty & Development Long Supply

120-158 N Eisenhower Ln., Lombard 18,221 Renewal Venture One Real Estate Silverlline Wholesale, Inc.

420 Wrightwood Ave., Elmhurst 17,441 New Darwin Realty & Development Euroview Enterprises, LLC


832 Industrial Dr., Elmhurst 90,214 User The Fitzpatrick Company Glass House Development, LLC

Downers Grove | Elmhurst | Glen Ellyn | Lombard | Oak BrookOakbrook Terrace | Villa Park | Wheaton



Vacancy Rate 7.27%

YTD New SF Delivered 40,700

SF Under Construction 155,907

Q3 Net Absorption -253,311


0%1%2%3%4%5%6%7%8%9%10%

-300.0

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Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

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400 N. Noble Street, Chicago58,614 SF For Sale or Lease



The vacancy rate in the Chicago North submarket increased 32 basis points to 7.3 percent in the third quarter. This was largely due to lack of tenant and user demand.

The available supply measured 5.2 million square feet in the third quarter, which was a 228,000-square-foot increase from the previous quarter level of 4.9 million square feet. There are 14 large blocks of spaces over 100,000 square feet that contain 2.2 million square feet or 42.5 percent of the overall vacant supply in the Chicago North submarket.

No new construction was completed in the Chicago North submarket. However, one speculative development is under construction, a 155,907-square foot facility is scheduled to be completed in the first quarter of 2018.

Small-sized users were the source of the third quarter leasing activity which totaled 29,000 square feet. This is a 38 percent decline from 47,000 square feet leased last quarter. Sale activity was minimal in the Chicago North submarket in the third quarter as just one sale totaling 36,703 square feet was completed.

The Chicago North submarket returned negative absorption of 253,000 square feet. This was the result of the increased vacant supply and lack of leasing and sales activity during the third quarter.

CHICAGO NORTH

Chicago North Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 95,000 0 40,700 0Under Construction 30,000 135,700 40,700 40,700 0 155,907

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

57

26

14

8

4

0 10 20 30 40 50 60

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Chicago North 37%

Chicago South 63%

Chicago North Chicago South

0

50,000

100,000

150,000

200,000

250,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



CHICAGO NORTH


4151 W, Lake St., Chicago 18,950 New Not Available Bartlett Tree Experts

6450 N. Kostner Ave., Chicago 10,251 New U.S. Heritage Group, Inc. Not Available


2137 W. Walnut St., Chicago 36,703 User Dayton Street Partners LLC Maverick Ales & Lagers

Chicago (North of I290) | Harwood HeightsLincolnwood | Norridge



Vacancy Rate 7.73%





0%1%2%3%4%5%6%7%8%9%10%

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Net A

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3507 W. 51st Street, Chicago316,550 SF Planned Development For Sale or Lease



Despite 325,000 square feet returning to the market in the third quarter, Chicago South’s vacancy rate dropped 36 basis points to 7.73 percent. Steady tenant and user demand were able to counter the large amount of space returning to the market.

The Chicago South’s vacant supply dropped 400,000 square feet from the second quarter volume of 9 million square feet to 8.6 million square feet. This also marks a 15.4 percent decline from one year ago when 10 million square feet were available.

One building was completed in Chicago South’s submarket, adding 162,000 square feet to the total inventory base. Clarius Partners completed a speculative warehouse facility at 2024 Wood St., Chicago. A 140,000-square-foot building at 1432 W 21st Street was razed during this quarter.

Tenant demand was driven by mid-sized tenants in the third quarter. Third quarter leasing activity in Chicago South measured 290,000 square feet. Third quarter sale transaction volume totaled 210,000 square feet, a decline from the 408,000 square feet sold during the prior quarter.

Despite weaker user and tenant demand Chicago South’s net absorption measured positive 336,000 square feet, which was significantly lower than the 1 million square feet reported last quarter.

CHICAGO SOUTH

Chicago South Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 166,370 227,700 162,000Under Construction 196,000 746,070 746,070 719,337 497,637 335,637

0

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200k & Up

0100,000200,000300,000400,000500,000600,000700,000800,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



CHICAGO SOUTH


4300 S. Morgan St., Chicago 84,174 New W.P. Carey, Inc. Griffith Foods

4404 W. Ann Lurie Pl., Chicago 83,091 New Westmount Realty Capital Concept Laboratories, Inc.

1400-1580 E. 97th St., Chicago 79,343 New Glen Una Grand Warehouse


2743 W. 36th Pl., Chicago 140,000 Investment Portugal Enterprises Chicago Industrial Real Estate LLC

Chicago (South of I290) | Brighton Park | Harlem | PilsenRoosevelt/Cicero | Stevenson | Stockyards | Pullman/West Pullman

Chicago North 37%

Chicago South 63%

Chicago North Chicago South



Vacancy Rate 6.00%





0%1%2%3%4%5%6%7%8%9%10%

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Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


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1200-1250 Douglas Road, Batavia137,573 SF New Construction (Divisible) For Lease



Fox Valley’s vacancy rate totaled 6 percent in the third quarter, an increase from the second quarter rate of 5.85 percent.

The amount of available industrial supply in Fox Valley rose by 3 percent in the third quarter, reaching 2.3 million square feet. This marginal increase can be attributed to a decrease in industrial product that was returned to the market coupled with poor leasing and sales activity.

HSA Commercial completed a 137,573-square-foot speculative warehouse facility at 1200-1250 Douglas Road in Batavia. The entire facility remains available.

Leasing volume fell sharply from the second quarter level of 364,000 square feet to just 97,000 square feet. For the second consecutive quarter, no sale transactions were reported in the Fox Valley submarket.

Third quarter net absorption reached positive 52,300 square feet, better that the negative 172,000 square feet posted last quarter. This improvement was attributed to the small amount of vacant supply returned to the market.

FOX VALLEY

Fox Valley Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 299,520 0 430,696 308,900 0 137,573Under Construction 180,121 430,696 137,500 137,500 137,500 14,250

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

17

10

7

5

5

0 5 10 15 20

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

West Chicago42%

Batavia 32%

St. Charles 24%

Others 2%

West Chicago Batavia St. Charles Others

050,000

100,000150,000200,000250,000300,000350,000400,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



FOX VALLEY


1800 Hawthorne Ln., West Chicago 144,924 Renewal LaGrou Porperties Plastipak Packaging, Inc.

1005-1035 Paramount Pkwy., Batavia 64,574 New Colony NorthStar Inc. Greenseed Contract Packaging

1400 Powis Ct., West Chicago 56,904 Renewal Liberty Property Trust Flowserve

3701 Illinois Ave., St. Charles 31,191 New Liberty Property Trust Windy Polymers

401-431 Raddant Rd., Batavia 20,302 Renewal Venture One Real Estate Cyberbond


None to Report


Batavia | Elburn | Geneva | St. Charles | West Chicago | Winfield



Vacancy Rate 3.84%



Q3 Net Absorption 0


0%1%2%3%4%5%6%7%8%9%10%

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Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

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88

39

BAY VALLEY FOODS937,000 SF

NIPPON SHARYO400,000 SF

ILLINOIS RIVER ENERGYILLINOIS RIVER ENERGY

BOISE BUILDINGMATERIAL

BOISE BUILDINGMATERIAL

N

501 STEWARD579,575 SF

Caron RdCaron Rd

Caron R

dC

aron Rd Ritchie RdRitchie Rd

Ritchie R

dR

itchie Rd

COATED SANDSSOLUTIONS

COATED SANDSSOLUTIONS

BUILDING PAD

NIPPON SHARYO

Prologis Park Rochelle85.9 Acres For Sale – Fully Developed Lots from 7-34.9 Acres



The I-39 Corridor did not see any movement for the second consecutive quarter. Tenant and user demand were absent from this submarket.

The corridor is still a crossroads for several types of industries that depend on rail and truck transportation and are not reliant on immediate access to O’Hare or the urban centers surrounding Chicago.

Land is available in this submarket warranting a closer look from developers looking to expand.

I-39 CORRIDOR

I-39 Corridor Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 978,120 0 0 0 0Under Construction 978,120 0 0 0 0 0

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

12

8

6

4

4

0 2 4 6 8 10 12 14

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Dekalb61%

Rochelle 17%

Dixon8%

Others 14%

Dekalb Rochelle Dixon Others

0

20,000

40,000

60,000

80,000

100,000

120,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



I-39 CORRIDOR


None to Report


None to Report

Boone County | DeKalb County | LaSalle County | Lee CountyOgle County | Winnebago County



Vacancy Rate 10.89%





0%

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1000 W. Crossroads Parkway, Bolingbrook16,256 SF (Divisible) For Lease



The third quarter vacancy rate rose substantially to 10.9 percent in the I-55 Corridor, a 1.8 percent increase from the second quarter rate of 9.1 percent. A large portion of this increase can be attributed to six different vacant buildings over 200,000 square feet coming to the market during the third quarter.

The available industrial supply in the I-55 Corridor increased by more than 1.8 million square feet, with 10.4 million square feet available at end of the third quarter. This figure can fluctuate dramatically since five large speculative buildings totaling 1.2 million square feet are scheduled to be completed next quarter.

Construction completions totaled 5 in the I-55 Corridor during the third quarter, which were built on a speculative basis. The largest building completed was a 302,000-square-foot speculative facility at 999 Dalton Lane in Bolingbrook. An additional nine projects are under construction totaling 1.8 million square feet, most of which are being built on a speculative basis.

Leasing volume fell sharply from the second quarter level of 1.2 million square feet to 838,000 square feet. I-55 Corridor is typically known for investment sales activity, no user sale activity took place in the third quarter.

Net absorption totaled negative 690,000 square feet in the third quarter, a figure well below the 2.1 million-square-foot net absorption total for the second quarter. This change was largely due to the completion of construction projects and less substantial leases being completed.

I-55 CORRIDOR



Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 958,305 1,072,170 1,952,687 0 2,244,644 1,160,200Under Construction 3,120,629 3,181,623 2,344,878 3,886,519 2,870,352 1,825,612

0

500,000

1,000,000

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4,500,000

48

39

28

14

21

0 10 20 30 40 50 60

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpBol ingbrook

39%

Romeoville 32%

Lockport10%

Woodridge 9%

Burr Ridge 3%

Others7%

Bolingbrook Romeoville Lockport Woodridge Burr Ridge Others

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



I-55 CORRIDOR


1401-1465 W. Normantown Rd., Romeoville 716,318 Renewal Heitman, LLC Kimberly Clark Corp.

150 E. Crossroads Pkwy., Bolingbrook 352,338 New Liberty Property Trust Samsung

860 W. Crossroads Pkwy., Romeoville 339,043 Expansion Prologis LeSaint Logistics

550 W. North Frontage Rd., Bolingbrook 269,591 New TA Realty Menasha Packaging

800 S. Weber Rd., Bolingbrook 164,354 Renewal ML Realty Partners La-Z-Boy


3 Building Portfolio 148,194 Investment Principal Real Estate Investors WHI Real Estate Partners

Bolingbrook | Burr Ridge | Crest Hill | Lemont | LockportPlainfield | Romeoville | Willowbrook | Woodridge



Vacancy Rate 7.81%





0%

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750 Central Avenue, University Park186,560 SF Recently Leased



The third quarter vacancy rate in the I-57 Corridor measured 7.8 percent, a 2.1 percent increase from the second quarter total of 5.7 percent.

Available supply in the I-57 Corridor increased dramatically from the second quarter level of 1.8 million square feet to 2.5 million square feet. Non-existent lease and sale activity, coupled with 700,000 square feet of new vacant supply re-entering the market were to blame for the rise in available supply.

After seeing three new buildings totaling 1.9 million square feet constructed in the second quarter, the I-57 Corridor had no construction deliveries in the third quarter. The I-57 Corridor total inventory will remain at 33 million square feet for quite some time, as no new projects are currently underway.

A tremendous amount of space returning to the market coupled with no sale and tenant activity resulted in net absorption of negative 696,000 square feet. The positive second quarter output was strong enough to overcome negative results posted in the third quarter. The year-to-date figure registered positive 1.2 million square feet.

I-57 CORRIDOR



Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 83,467 0 105,000 0 1,903,665 0Under Construction 0 1,962,165 1,857,165 1,857,165 0 0

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

6

5

2

3

3

0 1 2 3 4 5 6 7

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpUniversity Park

40%

Monee34%

Kankakee18%

Manteno6%

Peotone 2%

University Park Monee Kankakee Manteno Peotone

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



I-57 CORRIDOR


None to Report


None to Report

Beecher | Crete | Monee Peotone | Steger | University Park



Vacancy Rate 5.87%





0%

2%

4%

6%

8%

10%

12%

14%

-200.0

0.0

200.0

400.0

600.0

800.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

1551-1561 Aucutt Road, Montgomery13,100 SF (Divisible) For Sale or Lease



The I-88 Corridor vacancy rate grew from the second quarter rate of 5.6 percent to 5.8 percent in the third quarter. The rise in vacancy was due to poor user and tenant demand.

Available supply in the I-88 Corridor rose to 3.8 million square feet in the third quarter, an increase of 205,000 square feet from the prior quarter total of 3.6 million square feet. However, one year ago vacant supply totaled 4.9 million square feet in this market.

A 954,000 square foot build-to-suit warehouse was completed in the third quarter for Amazon at 1 Duke Parkway in Aurora. There are three speculative projects under construction which will add 459,000 square feet to the I-88 Corridor inventory base.

Leasing volume fell sharply from the second quarter level of 575,000 square feet to just 90,000 square feet. Sale activity also declined dramatically in this market, as only one third quarter sale transaction was recorded totaling 28,600 square feet. Two sales occurred in the previous quarter totaling 114,000 square feet.

I-88 Corridor’s net absorption measured positive 750,000 square feet in the third quarter. The positive outcome can be attributed to less vacant space returning to the market rather than heightened sale and leasing activity.

I-88 CORRIDOR



Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 1,144,372 827,193 0 0 0 954,720Under Construction 827,193 0 954,720 954,720 1,244,249 458,779

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

27

23

9

6

11

0 5 10 15 20 25 30

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Aurora 43%

North Aurora 25%

Montgomery 20%

Lis le 3%

Naperville 3%

Others6%

Aurora North Aurora Montgomery Lisle Naperville Others

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



I-88 CORRIDOR


2759 Eola Rd., Aurora 182,736 Renewal Liberty Property Trust XPO Logistics Warehouse

2453 Prospect Dr., Aurora 124,205 Renewal Liberty Property Trust Chep Pallet

1501-1505 Frontenac Rd., Naperville 36,360 New Steaks Family LLC SGA Holdings Inc.

3557 Butterfield Rd., Aurora 30,000 New Prologis Stericycle


966 Corporate Blvd., Aurora 238,604 Investment Panattoni Development Industrial Property Trust

410 Rathbone St., Aurora 28,668 User Hendricks Commercial Properties Comforts of Home Services


Aurora | Lisle | Montgomery | Naperville | North AuroraOswego | Plano | Sugar Grove | Warrenville | Yorkville



Vacancy Rate 6.37%





0%

2%

4%

6%

8%

10%

12%

14%

-100.0

400.0

900.0

1,400.0

1,900.0

2,400.0

2,900.0

3,400.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

1225 Channahon Road, Joliet (Unincorporated Will County)20,600 SF For Sale or Lease



An unfortunate 2.1 million square feet of vacant space returned to the Joliet / I-80 Corridor submarket in the third quarter, a 65 percent increase from the 1.2 million square feet returned during the second quarter. This caused the Joliet / I-80 Corridor vacancy rate to increase to 6.3 percent.

Two new speculative buildings completed in the third quarter accounted for 90 percent of the 2.1 million square feet returning to the Joliet / I-80 Corridor submarket in the third quarter.

Two construction projects were delivered during the third quarter of 2017 in Joliet, a 1,026,000-square-foot facility at 1023 E. Laraway Road and a 992,640-square-foot building at 100 E. Millsdale Road. Both facilities remain vacant.

Eight construction projects are currently under construction totaling 5.6 million square feet with three projects scheduled to be delivered by the end of the fourth quarter and five projects scheduled to be delivered in the second quarter 2018.

New lease activity totaled 284,000 square feet in the Joliet / I-80 Corridor submarket in the third quarter, a dramatic decrease from the second quarter’s 886,000 square feet.

There were no sale transactions recorded in the Joliet / I-80 Corridor in the third quarter, the last time this market had no sale activity was third quarter 2016.

Despite weak third quarter sale and leasing activity, net absorption in the Joliet / I-80 Corridor remained positive. However, the third quarter total of 291,000 square feet was significantly less than the 1.2 million square feet of net absorption posted second quarter.

JOLIET / I-80 CORRIDOR

Joliet / I-80 Corridor Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 1,554,137 1,250,772 678,000 2,260,449 1,547,750 2,018,640Under Construction 5,318,541 4,817,323 7,487,059 6,124,815 8,520,815 5,607,374

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

18

12

7

6

13

0 5 10 15 20

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Joliet 64%

Channahon17%

Elwood 9%

Tinley Park2%

New Lenox 2%Others

6%

Joliet Channahon Elwood Tinley Park New Lenox Others

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



JOLIET / I-80 CORRIDOR


18801 Oak Park Ave., Tinley Park 915,643 Renewal Hillwood M. Block & Son's, Inc.

1695-1701 Crossroads Dr., Joliet 192,390 New Teachers Insurance & Annuity Assoc. Kellogg's Company


None to Report

Channahon | Elwood | Frankfort | Joliet | Minooka | Mokena | MorrisNew Lenox | Rockdale | Shorewood | Tinley Park | Wilmington



Vacancy Rate 7.74%





0%

2%

4%

6%

8%

10%

12%

-200.0-150.0-100.0-50.0

0.050.0

100.0150.0200.0250.0300.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

525 Enterprise Parkway, Lake Zurich20,138 SF For Lease



The third quarter 2017 vacancy rate in Lake County measured 7.7 percent, a minor increase from the second quarter total of 7.4 percent. Steady user demand was not enough to overcome the amount of vacant space returning to the market.

Available inventory continued to grow in the Lake County submarket in the third quarter, reaching 6.0 million square feet, 5 percent increase from the 5.6 million square feet of available inventory measured in the previous quarter.

Two construction projects were delivered during the third quarter of 2017. A 42,000 square foot build-to-suit warehouse completed for ThermFlo at 1025 Busch Parkway in Buffalo Grove and a 400,734 square foot speculative building at 3900 Burwood Drive in Waukegan. There is one 19,000 square foot build-to-suit project for Neil Enterprises scheduled to be completed fourth quarter 2017.

Third quarter leasing activity totaled 211,000 square feet, down from 490,000 square feet posted in the second quarter. Four buildings were sold in the Lake County submarket in the third quarter totaling 150,600 square feet.

Modest user demand was enough to counter the amount of vacant space returning to the market which kept Lake County’s net absorption at positive 153,000 square feet. While significantly less than the 526,000 square feet posted last quarter, it is more impressive than the negative 120,000 square feet reported in the third quarter of 2016.

LAKE COUNTY

Lake County Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 60,165 0 157,500 42,537 78,154 442,734Under Construction 0 199,500 442,734 442,734 461,734 19,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

69

37

12

7

5

0 10 20 30 40 50 60 70 80

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Waukegan 24%

Libertyville 11%

Gurnee 10%

Buffa lo Grove 10%

Vernon Hills 10% Others

35%

Waukegan Libertyville Gurnee Buffalo Grove Vernon Hills Others

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



LAKE COUNTY


3600-3696 Burwood Dr., Waukegan 90,615 Renewal Prudential Insurance Company Derse Exhibits

1500 Harris Rd., Libertyville 58,890 New Culligan International Co. Biddeford Blankets, LLC

3800-3898 Sunset Ave., Waukegan 50,400 Renewal Transwestern Investment Group Cornfields

3210 Oak Grove Ave., Waukegan 50,332 Renewal Clarion Partners Lake County Press, Inc.

800 Corporate Woods Pkwy., Vernon Hills 47,643 New Van Vlissingen & Company ZF Services


500 Bond St., Lincolnshire 70,957 Investment UBS Realty Investors, LLC ML Realty Partners

220 Fairway Dr., Vernon Hills 68,279 User CenterPoint Properties Winix America, Inc.

2800 Northwestern Ave., Waukegan 23,600 User Paul Revere Mortgage, LLC Service Sanitation


Buffalo Grove | Grayslake | Gurnee | Lake Barrington | Lake ZurichLibertyville | Mundelein | N Chicago | Wauconda | Waukegan | Zion



Vacancy Rate 3.15%





0%

2%

4%

6%

8%

10%

12%

14%

0.020.040.060.080.0

100.0120.0140.0160.0180.0200.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

2401 Huntington Drive North, Algonquin101,667 SF For Sale



Strong leasing activity forced McHenry County’s third quarter vacancy down to 3.2 percent. This represents a 45-basis-point decrease from the second quarter’s rate of 3.6 percent.

The available supply in the McHenry County submarket fell 130,000 square feet from 1.0 million square feet in the second quarter to 900,600 square feet in the third quarter. McHenry County is concentrated in smaller size ranges, with approximately 80 percent of the available space in units smaller than 50,000 square feet.

Construction activity has been dormant in the McHenry County submarket in 2016 and 2017. With no new construction projects underway, McHenry County’s inventory base will stay at 28.6 million square feet for the balance of 2017.

One lease transaction had a significant impact on the third quarter leasing volume. 300 West, LLC leased 145,135 square feet at 300 West Street in Marengo. This brought the third quarter leasing volume to 204,400 square feet, far exceeding the 12,600 square feet leased last quarter. There were no sale transactions recorded in the McHenry county in the third quarter.

Heightened third quarter tenant demand contributed to the positive net absorption of 130,000 square feet. However, this is a significant decline from the 230,000 square feet of positive net absorption registered in the prior quarter.

McHENRY COUNTY

McHenry County Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 0 0 0Under Construction 0 0 0 0 0 0

01

16

3

3

1

1

0 2 4 6 8 10 12 14 16 18

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Woodstock47%

Crysta l Lake 16%

Algonquin14%

Cary7%

Lakemoor5%

Others11%

Woodstock Crystal Lake Algonquin Cary Lakemoor Others

0100,000200,000300,000400,000500,000600,000700,000800,000

Q2 2016Q3 2016Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



McHENRY COUNTY


300 West St., Marengo 145,135 New Round2, LLC 300 West, LLC

220 Exchange Dr., Crystal Lake 33,816 New Colony NorthStar, Inc. Urban Air

420 Wrightwood Ave., Elmhurst 17,441 New Darwin Realty & Development Euroview Enterprises, LLC


None to Report


Algonquin | Crystal Lake | Harvard | Lake in the Hills Marengo | McHenry | Woodstock

None to Report



Vacancy Rate 3.99%





0%1%2%3%4%5%6%7%8%9%10%

-200.0

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017Net Absorption Vacancy rate

Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

190-B Northfield Road, Northfield9,600 SF For Sale



The North Cook industrial available supply measured 1.5 million square feet in the third quarter, slightly ahead of the 1.4 million square feet recorded in the prior quarter. Steady user and tenant demand kept the available inventory from rising any higher.

North Cook’s vacancy rate measured 4.0 percent in the third quarter, a slight increase from 3.9 percent registered in the second quarter. One year ago, the vacancy rate in this submarket was 5.42 percent.

No new construction was completed in the North Cook submarket for the second consecutive quarter. There is one speculative project under construction which will add 236,000 square feet to the North Cook inventory base.

With a total of 52,493 square feet of completed transactions, North Cook leasing activity declined by 47 percent in the third quarter. After a strong second quarter result of 107,000 square feet, sale activity in the North Cook plummeted to just 64,000 square feet during the third quarter. In the same time one year ago, there were 29,000 square feet of completed transactions.

North Cook’s net absorption measured positive 22,000 square feet in the third quarter. The positive outcome can be attributed to less vacant space returning to the market rather than heightened sale and leasing activity.

NORTH COOK

North Cook Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 135,650 0 0Under Construction 0 135,650 135,650 0 236,912 236,912

0

50,000

100,000

150,000

200,000

250,000

19

7

3

0

0

0 5 10 15 20

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Northbrook 29% Niles

23%

Morton Grove 23%

Skokie 19%

Glenview 1%

Others5%

Northbrook Niles Morton Grove Skokie Glenview Others

0

100,000

200,000

300,000

400,000

500,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



NORTH COOK


7300-7400 Linder Ave., Skokie 132,103 New Woodward, Inc. Edler Warehousing


7550 N. Oak Park Ave., Niles 29,880 User Swiss Precision Machining Care One Pharmacy Services, LLC

3757 W. Touhy Ave., Lincolnwood 22,977 Investment Individual Clark Street Real Estate

Evanston | Glenview | Lincolnwood | Morton Grove | Niles | Northbrook Northfield | Park Ridge | Rosemont | Skokie | Wilmette



Vacancy Rate 7.36%





0%1%2%3%4%5%6%7%8%9%10%

-600.0

-400.0

-200.0

0.0

200.0

400.0

600.0

800.0

1,000.0


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

350 S. Church Street, Addison87,219 SF For Sale or Lease



Available supply in the North DuPage submarket escalated from second quarter’s 4.3 million square feet to 4.7 million square feet in the third quarter. Four large blocks of space totaling 1.2 million square feet returned to the market, contributing to North DuPage’s inflated industrial supply.

Weaker user demand caused the North DuPage vacancy rate to increase sharply to 7.3 percent, which was an increase of 60-basis-points from the prior quarter’s mark of 6.7 percent.

Two speculative construction projects were completed in the third quarter totaling 803,000 square feet. These projects included Exeter Property Group’s 421,000-square-foot building in the Brewster Creek Business Park in Bartlett and Dermody Group’s 381,600-square-foot facility in the LogistiCenter in Carol Stream.

Five large leases over 100,000 square feet each had a positive impact on the total third quarter leasing volume of 892,000 square feet. This was an astonishing 84 percent increase from the second quarter total of 455,000 square feet of lease transactions.

Two sales were completed in the North DuPage submarket totaling just 54,800 square feet. An 87 percent decline from the second quarter mark of 413,000 square feet.

Tremendous leasing activity caused absorption to reach positive 364,000 square feet in the third quarter. This was a 382,000-square-foot change from the negative 17,900 square feet registered last quarter.

NORTH DuPAGE

North DuPage Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 414,192 227,977 137,730 285,600 167,550 803,003Under Construction 457,880 356,250 1,256,153 970,553 903,894 323,154

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

32

25

9

9

6

0 5 10 15 20 25 30 35

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Addison 26%

Carol Stream18%

Bartlett14%

Bloomingdale 12%

Hanover Park17%

Others13%

Addison Carol Stream Bartlett Bloomingdale Hanover Park Others

0

200,000

400,000

600,000

800,000

1,000,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



NORTH DuPAGE


200 Regency Dr., Glendale Heights 150,461 New Prologis Convenience Valet/Mechanical Servants Inc.

1820-1920 Internationale Blvd., Glendale Heights 123,923 New 1879 Internationale Properties Priority Wire & Cable

640-680 Center Ave., Carol Stream 110,960 New Duke Realty Grunt Style


170 Covington Dr., Bloomingdale 29,825 User Pearl Design Group Shepard International, Inc.

Addison | Bartlett | Bloomingdale | Carol StreamGlendale Heights | Hanover Park | Roselle



Vacancy Rate 8.68%




YTD Net Absorption -5,649

0%1%2%3%4%5%6%7%8%9%10%

-100.0

-50.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

NorthWest Pointe II – 2601 Galvin Drive, Elgin385,372 SF (Divisible) For Sale or Lease



The North Kane vacancy rate made a vast improvement from 9.4 percent recorded in the second quarter to 8.6 percent in the third quarter. Robust leasing activity was the driving force in lowering North Kane’s vacancy rate.

Available industrial space totaled 3.1 million square feet in the third quarter, which was 270,000 square feet less than the second quarter volume of 3.1 million square feet. Less vacant space returning to the market kept the third quarter vacant supply from climbing.

For the second consecutive quarter, no new developments were delivered to the North Kane submarket. With no new construction projects underway, North Kane’s inventory base will stay at 36.2 million square feet for the balance of 2017.

North Kane’s third quarter leasing activity totaled 229,000 square feet. The heightened tenant demand was driven by mid-sized users. Four transactions between 40,000 to 60,000 square feet were signed in the third quarter, accounting for 204,000 square feet of the overall leasing volume.

Two buildings sold in Elgin in the third quarter, bringing third quarter sale activity to 71,600 square feet.

Tremendous leasing activity caused absorption to reach positive 271,970 square feet in the third quarter. This was a 520,000 square foot change from the negative 248,000 square feet last quarter.

NORTH KANE

North Kane Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 82,922 327,000 1,093,643 56,250 0 0Under Construction 1,137,576 1,117,012 56,250 0 0 0

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

28

20

8

4

4

0 5 10 15 20 25 30

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpElgin86%

South Elgin4%

Huntley3%

Carpentersville 2%

West Dundee2%Others

3%

Elgin South Elgin Huntley Carpentersville West Dundee Others

0

200,000

400,000

600,000

800,000

1,000,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



NORTH KANE


1925 Holmes Rd., Elgin 80,127 New High Street Realty Co. United Foods

1360 Madeline Rd., Elgin 61,202 New Brookfield Office Properties, Inc. Nepsa

2792 Spectrum Dr., Elgin 49,206 Renewal Stockbridge Capital Group, LLC Illinois Wholesale Cash Register, Inc.

200-290 Burnet Dr., Gilberts 44,844 Expansion Interstate Partners Sub-Zero


2590 Alft Ln., Elgin 72,928 User Elgin Property Development, LLC MKD Electric

1250 Davis Rd.., Elgin 16,715 User Marsh & McLane Holdings DEUTZ USA Corp.


Carpentersville | East Dundee | Elgin | Gilberts | HampshireHuntley | Pingree Grove | South Elgin | West Dundee



Vacancy Rate 5.38%





0%1%2%3%4%5%6%7%8%9%10%

-300.0

-200.0

-100.0

0.0

100.0

200.0

300.0

Q3 2013Q3 2014Q3 2015Q3 2016Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

726 Lunt Avenue, Schaumburg7,200 SF (Divisible) For Sale or Lease



Vacant supply in the Northwest Cook submarket totaled 2.5 million square feet at the end of the third quarter, which was only marginally improved from the 2.6 million square feet vacant in the previous quarter. Less space returning to the market kept the third quarter vacant supply from escalating.

The third quarter vacancy rate measured 5.4 percent, falling 17-basis-points from the second quarter mark of 5.5 percent. The vacancy rate decline was more pronounced when compared to one year ago when it reached 7 percent.

After six consecutive quarters with no new construction, the Northwest Cook submarket received its first new construction completion. A 56,297 square foot build-to-suit building was delivered for Trumpf Inc. at Huntington 90 Business Park in Hoffman Estates.

With a total of 92,000 square feet of completed transactions, Northwest Cook leasing activity declined by 34 percent in the third quarter. Most of leasing activity came from small users.

Sale activity in the third quarter totaled 95,000 square feet, dramatically lower than second quarter’s figure of 336,000 square feet.

Despite weak third quarter sale and leasing activity, Northwest Cook’s net absorption figured remained positive. However, the third quarter’s total of 133,500 square feet was less than the 301,600 square feet of net absorption posted in the second quarter.

NORTHWEST COOK

Northwest Cook Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 0 0 56,297Under Construction 0 50,000 56,297 56,297 237,346 304,804

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

39

7

2

3

3

0 5 10 15 20 25 30 35 40 45

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpArl ington Heights

31%

Streamwood 18%Wheeling

13%

Schaumburg 13%

Mount Prospect 10%

Others15%

Arlington Heights Streamwood Wheeling Schaumburg Mount Prospect Others

0

100,000

200,000

300,000

400,000

500,000

600,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



NORTHWEST COOK


190-198 Carpenter Ave., Wheeling 36,027 Renewal First American Properties, Inc. International Toner

3456 Ridge Ave., Arlington Heights 25,092 New American Landmark Properties, Ltd. Not available

2000-2080 Carboy Rd., Mount Prospect 20,000 New Brennan Investment Group Leico Enterprises, Inc.


1250 Feehanville Dr., Mount Prospect 37,750 User Toko America Inc. Touchpoint 360

700 E. Business Center Dr., Mount Prospect 34,800 User Individual Zeelaid, LLC

3121 Tollview Dr., Rolling Meadows 22,644 User Clear Height Properties RNS Properties LLC


Arlington Hts | Hoffman Ests | Mt Prospect | Palatine | Prospect HtsRolling Meadows | Schaumburg | Streamwood | Wheeling



Vacancy Rate 4.14%





0%

2%

4%

6%

8%

10%

12%

14%

-100.0

-50.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

6515 Ameriplex Drive, Portage, IN341,249 SF (Divisible) For Lease



Northwest Indiana’s vacancy rate measured 4.1 percent in the third quarter, a marginal increase from 4.0 percent posted in the previous quarter. Less space returning to the market rather than strong user and tenant demand kept the third quarter vacancy rate from climbing.

Available industrial space totaled 1.9 million square feet in the third quarter, which was only 55,000 square feet higher than the second quarter volume of 1.85 million square feet.

The Northwest Indiana submarket had no construction deliveries in the third quarter.

With no new construction projects underway, Northwest Indiana’s inventory base will stay at 46 million square feet for the rest of 2017.

With a total of 14,200 square feet of completed transactions, Northwest Indiana leasing activity declined by 33 percent this quarter.

There were no sale transactions recorded in the Northwest Indiana submarket in the third quarter.

Northwest Indiana’s third quarter net absorption totaled negative 55,300 square feet, a 291,000-square-foot change from the positive 235,800 square feet posted last quarter. Despite the negative third quarter results, the year-to-date volume totaled 93,000 square feet.

NORTHWEST INDIANA

North Kane Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 30,000 40,000 0 0 80,000 0Under Construction 40,000 0 0 80,000 0 0

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

19

7

4

1

1

0 2 4 6 8 10 12 14 16 18 20

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & UpPortage

37%

East Chicago24%

Hammond 14%

Munster 9%

Gary7%

Others9%

Portage East Chicago Hammond Munster Gary Others

0

50,000

100,000

150,000

200,000

250,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



NORTHWEST INDIANA


201 Mississippi St., Gary 33,001 Renewal Welsh Investments BMI Refractory Services Inc.

1600 Northwind Pkwy, Hobart 18,271 Renewal Becknell Industrial Rogers Supply Company


None to report

Lake & Porter Counties | E Chicago | Gary | Hammond | Highland Hobart | Merrillville | Munster | Portage | Valparaiso


The O’Hare vacancy rate experienced a noteworthy recovery from the second quarter vacancy rate of 6.7 percent to the third quarter rate of 5.6 percent – a 113-basis-point decline. The improvement in O’Hare’s vacancy rate was caused by less product returning to the market coupled with consistent user demand.

The available industrial supply shrunk by an astonishing 1.1 million square feet from the second quarter mark of 6.7 million square feet to 5.6 million square feet. Large vacancies continued to place a burden on O’Hare’s vacant supply. At the end of the third quarter, there were 23 buildings with vacancies more than 100,000 square feet.

One building was completed in the O’Hare submarket in the third quarter. A 10,135 square foot speculative facility was built at 1501 Landmeier Road in Elk Grove Village.

There are three speculative projects expected to be delivered in the fourth quarter 2017 which will add 233,700 square feet to the O’Hare inventory base.

Strong leasing activity continued in the third quarter with total volume reaching 851,000 square feet. The third quarter had three large transactions over 100,000 square feet totaling 415,000 square feet. The balance of the leasing volume occurred in spaces between 10,000 square feet and 50,000 square feet.

User sale volume jumped 60 percent from the second quarter level of 324,000 square feet to 529,000 square feet. The largest third quarter sale occurred when Amtab Manufacturing Company purchased a 313,102-square-foot building at 600 Eagle Drive in Bensenville.

After reaching negative 776,000 square feet in the second quarter, tremendous third quarter sale volume pushed the O’Hare new absorption to positive 1.1 million square feet.


Vacancy Rate 5.64%





0%1%2%3%4%5%6%7%8%9%10%

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

O’Hare Express Center – 514 Express Center Drive, Chicago215,000 SF (Expandable) For Lease



O’HARE

O’Hare Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 539,000 97,041 0 175,982 10,135Under Construction 783,000 419,982 175,982 306,579 238,366 329,737

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

67

42

13

6

4

0 10 20 30 40 50 60 70 80

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Elk Grove 36%

Des Plaines 16%

Bensenville 14%

Wood Dale 14%

Itasca10%

Others10%

Elk Grove Des Plaines Bensenville Wood Dale Itasca Others

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



O’HARE


855 N Wood Dale Rd., Wood Dale 207,721 Subleased Prologis All Tile/Carpet Cushions & Supplies

1001 N. Mittel Dr., Wood Dale 107,740 New Bristol Group Hegele Logistics

105 E. Oakton St., Des Plaines 100,227 New Prologis International Paper Company

1120-1144 Ellis St., Bensenville 91,198 Renewal Prologis PODS, Inc.

1475 Thorndale Ave., Itasca 57,143 Subleased Sutton Transport, Inc Value City Furniture


600 Eagle Dr., Bensenville 313,102 User Prologis Amtab Manufacturing Co.

2201 Lunt Ave., Elk Grove Village 150,520 Investment Bridge Development Morgan Stanley

2500 Touhy Ave., Elk Grove Village 77,180 User Individual Windfall Elk Grove LLC

712 N. Central Ave., Wood Dale 57,005 Investment RE Development Solutions, Inc. Bobeck Real Estate Co., Inc.

700 Fargo Ave., Elk Grove 51,412 User Continental Bindery Corporation City of Elk Grove Village


Bensenville | Chicago (O’Hare) | Des Plaines Elk Grove Village | Itasca | Wood Dale



Vacancy Rate 4.26%





0%

2%

4%

6%

8%

10%

12%

-200.0

-100.0

0.0

100.0

200.0

300.0

400.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

675 Corporate Parkway, Belvidere221,844 SF (Expandable) New Construction For Lease



The Rockford Area’s vacancy rate remained unchanged in the third quarter at 4.2 percent. Minimal space returning to the market rather than strong user and tenant demand kept the third quarter vacancy rate from climbing.

Available industrial space totaled 2.4 million square feet in the third quarter, which was only 11,200 square feet higher than the second quarter volume of 2.39 million square feet.

One building was delivered to the Rockford Area during the third quarter, adding 221,844 square feet to the total industrial inventory.

There were no lease and sale transactions recorded in the Rockford Area in the third quarter. The Rockford Area is still at crossroads for several types of industries that depend on rail and truck transportation and are not reliant on immediate access to O’Hare or the urban centers surrounding Chicago.

Third quarter net absorption measured positive 210,600 square feet. Although positive, it was 41 percent lower than the 358,000 square feet reported in the second quarter.

ROCKFORD

South Cook Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 0 336,000 221,844Under Construction 0 336,000 336,000 336,000 221,844 0

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

24

11

7

2

1

0 5 10 15 20 25 30

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Rockford 50%

Loves Park 29%

Belvidere9%

South Beloit 5%

Machesney Park 4%

Others3%

Rockford Loves Park Belvidere South Beloit Machesney Park Others

0

50,000

100,000

150,000

200,000

250,000

300,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



ROCKFORD


None to Report


None to Report

Beloit | Belvidere | Janesville | Loves Park | Machesney Park Rockford | Rockton | South Beloit



Vacancy Rate 4.53%





0%1%2%3%4%5%6%7%8%9%10%

-200.0

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

5100 W. 70th Place, Bedford Park266,074 SF (Divisible) For Lease



Tremendous third quarter tenant and user demand pushed down South Cook’s vacancy rate to 4.5 percent. This was a solid 125-basis-point decline from the second quarter mark of 5.7 percent. The improvement was more pronounced compared to one year ago when the vacancy rate totaled 6.6 percent.

South Cook vacant industrial supply has dropped steadily from the second quarter 2017 of 4.9 million square feet to the current availability of 3.8 million square feet – an immense improvement of 1.1 million square feet.

The South Cook submarket had no construction deliveries in the third quarter. The South Cook total inventory will remain at 85 million square feet for quite some time, as no new projects are currently underway.

Strong leasing activity continued in the third quarter with total volume reaching 957,000 square feet, the highest of all Chicago industrial submarkets.

Three user sale transactions brought the third quarter sale volume in the South Cook submarket to 368,000 square feet, which crushed the second quarter sale activity of only 23,000 square feet.

Third quarter net absorption reached 1.2 million square feet in the South Cook submarket. Strong leasing and sale activity coupled with a reduction in newly available spaces were contributing factors to this positive result. Net absorption showed a sharp increase from positive 702,000 square feet posted in the previous quarter.

SOUTH COOK

South Cook Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 0 0 418,000 0Under Construction 0 0 418,000 0 0 0

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

47

26

12

4

9

0 5 10 15 20 25 30 35 40 45 50

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up

Chicago Heights 15% Bedford Park

14%

Alsip8%

Harvey8%

Matteson6%

Others49%

Chicago Heights Bedford Park Alsip Harvey Matteson Others

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



SOUTH COOK


5750 W. 118th St., Alsip 378,262 Subleased Berry Plastics Corporation Richwill Enterprises Inc.

11859 S. Central Ave., Alsip 263,840 New/Renewal DRA Advisors, LLC First Logistics

13040 S. Pulaski Rd., Alsip 204,184 New/Renewal Brennan Investment Group First Logistics

5555 W. 73rd St., Bedford Park 159,857 New Gray & Associates PCA

5100 W. 70th Pl., Bedford Park 142,834 New Global Logistics Properties DAMCO Distribution Services, Inc.


7400 Richards Rd., Bridgeview 161,740 User Transwestern Investment Group Not available

12640 Central Park Ave., Blue Island 157,800 User G&W Electric Company Project One Auto Sport

7301-7361 S. Meade Ave, Bedford Park 156,000 Investment Exeter Property Group Cabot Properties Inc.

712 N. Central Ave., Wood Dale 57,005 Investment RE Development Solutions, Inc. Bobeck Real Estate Company, Inc.

9809 Industrial Dr., Bridgeview 49,000 User Enthone, Inc. Liv Transportation


Alsip | Bedford Park | Bridgeview | Chicago Heights | Crestwood | Harvey Lansing | Oak Forest | Orland Park | S Holland | Sauk Village



Vacancy Rate 5.65%





0%

1%

2%

3%

4%

5%

6%

7%

-200.0

0.0

200.0

400.0

600.0

800.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate

Enterprise Business Park – 10601 Enterprise Way, Sturtevant, WI166,879 SF (Divisible) New Construction For Lease



The vacancy rate in Southeast Wisconsin measured 5.6 percent in the third quarter, 21-basis points lower than the 5.8 percent reported vacant in the previous quarter.

Available industrial space totaled 3.2 million square feet in the third quarter, which was a 120,000 square feet lower than the second quarter volume of 3.3 million square feet. The positive outcome can be attributed to less vacant space returning to the market rather than heightened sale and leasing activity.

No new developments were delivered to the Southeast Wisconsin submarket in the third quarter. There are three speculative projects under construction which will add 609,000 square feet to the Southeast Wisconsin inventory base.

Leasing transaction volume fell to 132,000 square feet, a 65 percent decrease from the second quarter mark of 376,000 square feet. There were sale transactions recorded in the Southeast Wisconsin submarket in the third quarter.

Third quarter net absorption measured positive 120,000 square feet. A dramatic decline from the 1.1 million square feet reported in the second quarter. Weaker third quarter user demand contributed to the inferior results.

SOUTHEAST WISCONSIN

Southeast Wisconsin Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 683,391 155,844 624,860 29,775 1,602,348 0Under Construction 356,540 2,227,208 1,602,348 1,602,348 417,384 609,430

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

23

19

10

10

7

0 5 10 15 20 25

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Pleasant Prairie 38%

Racine19%

Mt. Pleasant 18%

Somers 9%

Sturtevant 7%

Others9%

Pleasant Prairie Racine Mt. Pleasant Somers Sturtevant Others

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



SOUTHEAST WISCONSIN


1333 Grandview Pkwy., Sturtevant 209,151 New Caleast Global Logistics LLC Johnson Health Tech

100 Land & Lakes Dr., Sturtevant 132,000 New Zilber Property Group Goodwill Industries


100 Land & Lakes Dr., Sturtevant 132,000 Investment Land and Lakes Development Zilber Property Group

Kenosha | Mount Pleasant | Pleasant Prairie Racine | Sturtevant



Vacancy Rate 9.14%





825 W. 26th Street, LaGrange Park65,580 SF For Sale

THIRD QUARTER OVERVIEWThe vacancy rate in the Southwest Cook submarket dropped 31-basis-points from the second quarter mark of 9.4 percent to the current vacancy rate of 9.1 percent. Minimal space returning to the market coupled with steady tenant demand were the primary cause for the improved third quarter results.

Available industrial space totaled 2.5 million square feet in the third quarter, which was 84,500 square feet lower that the second quarter volume of 2.6 million square feet.

For the third consecutive quarter, no new developments were delivered to Southwest Cook submarket. There is one build-to-suit project under construction which will add 172,000 square feet to the Southwest Cook inventory base.

Third quarter leasing volume measured 184,800 square feet in the Southwest Cook submarket, a 28,000-square-foot increase from the 156,000 square feet of lease transactions completed in the second quarter. However, this was a 67 percent decline from the 572,000 square feet leased one year ago.

There were no sale transactions recorded in the Southwest Cook county in the third quarter.

The third quarter net absorption totaled positive 84,500 square feet. Although positive, this marks a 30 percent decline from the second quarter mark of 121,500 square feet.

SOUTHWEST COOK

Southwest Cook Submarket

0%1%2%3%4%5%6%7%8%9%10%

-50.00.0

50.0100.0150.0200.0250.0300.0350.0400.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

n (in

thou

sand

s SF

) VacancyRate



SOUTHWEST COOK


Berwyn | Brookfield | Cicero | CountrysideLaGrange | McCook | Western Springs

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 282,933 0 0 0Under Construction 283,124 283,124 0 0 172,000 172,000

0

50,000

100,000

150,000

200,000

250,000

300,000

19

11

11

6

6

0 2 4 6 8 10 12 14 16 18 20

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Hodgkins 34%

McCook27%

Cicero17%

Countryside 12%

Lyons4%

Others6%

Hodgkins McCook Cicero Countryside Lyons Others

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold




8710-8740 w 50th St., McCook 89,056 New James Campbell Company Pure's Food Specialties

3100-3250 S. Central Ave., Cicero 30,788 New Prologis American Jebco

6800 Santa Fe Dr., Hodgkins 28,182 New International Airport Centers Registry Steak/Cheesewich

6800 Santa Fe Dr., Hodgkins 24,025 New International Airport Centers Summit Cold Storage

1234 Bristol Ave., Westchester 12,750 New Erie Industrial Products Co. Drywall Masters


None to Report



Vacancy Rate 8.42%





0%

2%

4%

6%

8%

10%

12%

14%

-600.0-500.0-400.0-300.0-200.0-100.0

0.0100.0200.0300.0400.0

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017


Net A

bso

rptio

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thou

sand

s SF

) VacancyRate

165 W. Lake Street, Northlake126,153 SF For Lease



The West Cook vacancy rate continues to improve. The third quarter rate of 8.4 percent was an 81-basis-point drop from the 9.2 percent reported during the prior quarter. Furthermore, the vacancy rate in this submarket one year ago totaled 10.2 percent.

After registering available supply of 6.4 million square feet in the second quarter, the West Cook submarket had 5.8 million square feet available at the end of the third quarter. The demolition of a vacant 458,000 square foot building was the cause of this decline.

Two speculative buildings and one building addition were delivered to the West Cook submarket during the third quarter, adding 217,500 square feet to the total industrial inventory.

A 458,884 square foot facility was demolished in the third quarter at 10601 Seymour Avenue in Franklin Park. Owner CenterPoint Properties will construct a 225,891 square foot speculative facility.

With a total of 137,000 square feet of completed transactions, West Cook leasing activity declined by 72 percent in the third quarter.

User sale activity in the West Cook submarket occurred in small buildings between 13,000 square feet and 60,000 square feet, resulting in the third quarter volume of 209,000 square feet. This marks a 31 percent decline from the 304,500 square feet sold during the second quarter.

Third quarter net absorption measured positive 346,000 square feet. Although positive, it was 66 percent lower than the 1.0 million square feet reported in the second quarter. Weaker third quarter tenant demand contributed to the inferior results.

WEST COOK

West Cook Submarket


Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017Deliveries 0 0 561,650 674,014 0 217,525Under Construction 550,315 1,295,664 734,014 217,525 217,525 99,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

48

24

10

7

9

0 10 20 30 40 50 60

20k to 50k

50k to 100k

100k to 150k

150k to 200k

200k & Up Franklin Park 46%

Melrose Park 20%

Northlake 18%

Schi ller Park 9%

Bellwood 3%

Others4%

Franklin Park Melrose Park Northlake Schiller Park Bellwood Others

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Leased Sold



WEST COOK


2101-2111 21st St., Broadview 46,973 New Welbic III Broadview 21 LLC RIPA LLC

9501 Winona Ave., Schiller Park 37,500 New Northern Builders QCC LLC

9601-9657 Soreng Ave., Schiller Park 31,940 New Morgan Stanley Angles on Design, Inc.

2040 Indian Boundary Dr., Melrose Park 28,200 New Reich Brothers First Transit


10501 Seymour Ave., Franklin Park 367,389 Investment DB RREEF Morgan Stanley

11600 Grand Ave., Northlake 182,923 Investment Bridge Development Morgan Stanley

11333-11341 Melrose Ave., Franklin Park 101,606 User Individual Archer Screw Products, Inc.

9601-9657 Soreng Ave., Schiller Park 84,700 Investment Bridge Development Morgan Stanley

9555 Soreng Ave., Schiller Park 72,825 Investment Bridge Development Morgan Stanley


Broadview | Franklin Park | Melrose ParkNorthlake | Oak Park | Schiller Park

THIRD QUARTER 2017

9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018 | 773-355-3000 | www.lee-associates.com50

LEE & ASSOCIATESWHO WE ARE...

About UsWith over 50 offices across the US and Canada, the Lee & Associates group of independently owned and operated companies is the largest regional commercial real estate services provider in the United States.

Each Lee & Associates group office represents a broad array of regional, national and international clients, from individual investors and small businesses, to large corporations and institutions.

Lee & Associates clients enjoy a comprehensive range of specialized commercial real estate services including industrial, office and retail property sales and leasing, real estate investment consulting, real estate financing, property acquisition and disposition, tenant representation and relocation, property and portfolio evaluation and market research.

Origin & PhilosophyIn 1979, founder Bill Lee established the first Lee & Associates office, driven by the unique idea to turn real estate brokers into company owners or “shareholders”. Bill Lee’s guiding philosophy was the clients’ interests would be best served by a collective team effort from experienced sales agents who had an ownership stake in the privately-held organization, earned through exceptional performance and ethical practice.

Not merely employees, profit-sharing Lee owner/agents would strive to create a sense of shared responsibility and cooperation throughout the organization, and would encourage an orientation toward long-term client relationships and business solutions.

Since then, Bill Lee’s profit sharing concept has proven enormously successful, and has fueled an explosive growth to include dozens of additional offices throughout the nation.

The Lee AdvantageFast Client Results. As company owners, Lee principals have a vested interest in the swift, successful completion of client assignments and transactions. Our associate brokers continually strive to earn ownership standing, encouraging a coordinated team effort and fast effective results for clients.

Streamlined Personal Service. Each Lee group office is owned and operated by the brokers in that office. Clients deal directly with decision makers, not with an unwieldy corporate bureaucracy like with many of our competitors.

Experience Counts. The average experience of Lee’s principal commercial brokers is 15-20 years. Our unique profit-sharing structure attracts the best people as owner brokers, only those with exceptional skills, confidence and ethical practice.

Long-Term Relationship. Lee & Associates boasts the lowest turnover rate in the industry. Our ownership structure encourages longevity, allowing for long term relationships with clients.

In-Depth Market Knowledge. Each Lee group office is committed to providing the best data and analysis for the market it serves. No other commercial real estate company has made specialized market knowledge and research as central to its business practice.

Business Stability. Since inception, each Lee & Associates group office has been profitable, privately-held and managed by its individual shareholders. Newly formed offices are stable, debt-free operations, with all startup capital funded by shareholders of all offices through Lee’s venture capital group.

Strong National Affiliations. Lee & Associates maintains affiliations with recognized brokers in all major US real estate markets. Lee’s national organization affiliations include: SIOR, NACOR, IFMA, CRE, ICSC , IDRC and CCIM.

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THIRD QUARTER 2017

Lee & Associates of Illinois | Industrial Market Report | 3q2017

CHICAGOLAND MARKETBROKERAGE SERVICES

INDUSTRIAL SPECIALISTS

Michael Androwich, [email protected]

Rick AnesiVice [email protected]

Steven BassSr. Vice [email protected]

Andrew [email protected]

Conor [email protected]

John Cassidy, [email protected]

Thomas Condon, [email protected]

Caroline DellMarketing Director/[email protected]

Ryan EarleySenior [email protected]

Nick EboliSr. Vice [email protected]

Jay FarnamVice [email protected]

Joseph FeeneySenior [email protected]

Kenneth [email protected]

Jeffrey [email protected]

Terry [email protected]

Jeffrey Janda, [email protected]

Ryan KehoeVice [email protected]

Tim [email protected]

Walter [email protected]

Christopher [email protected]

David [email protected]

James Planey, [email protected]

Michael [email protected]

John Sharpe, [email protected]\

Brad Simousek Associate 773.355.3016 [email protected]

Brian VanoskyPrincipal 773.355.3023 [email protected]

RETAIL SPECIALISTS

A. Rick ScardinoPrincipal 773.355.3040 [email protected]

Michael Elam Associate 773.355.3048 [email protected]

MULTI-FAMILY SPECIALIST RESEARCH SPECIALIST

Brian [email protected]

Diana PerezDirector of [email protected]

THIRD QUARTER 2017

9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018 | 773-355-3000 | www.lee-associates.com

CHICAGOLAND INDUSTRIALMARKET REPORT

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Since its inception there has been an explosive growth of Lee & Associates offices throughout the country and now in Vancouver, British Columbia, making it one of the largest and fastest growing commercial real estate organizations in North America.

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CHICAGOLAND INDUSTRIAL MARKET REPORT · 6 9450 W. Bryn Mawr Avenue, Suite 550 | Rosemont, IL 60018...

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