Marcus & Millichap is pleased to present the opportunity to acquire the property located at 15 West Industrial Drive in Kankakee, Illinois. The subject property consists of approximately 18,850 square feet of flex space and is situated on 1.72 acres of land. The two-building asset features a showroom, metal construction, three grade-level doors, and over 12,000 square feet of outside storage space. At less than $39 per square foot, the property is priced well below replacement cost. Situated within Kankakee County, the property enjoys some of the lowest property taxes in Northeast Illinois (Tax-Rates.org). Located just off of U.S. Route 52, the property sits in close proximity to Interstate 57 and is only a five-minute drive from the Greater Kankakee Airport.
The property sits within the Illinois North Area market, which contains 66.5 million square feet of industrial space. The vacancy rate closed out last year falling for five consecutive quarters down to 4.1 percent. While rent growth slowed down during 2022, market rents were still up 8.0 for the year, 210 basis points higher than the three-year annual average. Market rents now average about $5.00 per square foot, offering tenants nearly a 44 percent discount compared to the neighboring Chicago market. Thanks to a record fourth quarter, demand set a new high in 2022 with 2.5 million square feet absorbed on net, representing about 3.8 percent of existing inventory. Despite the submarket’s impressive fundamentals, there were no industrial properties under construction going into 2023. As a result, rent growth and vacancies will go unimpeded by new supply for the foreseeable future (CoStar).
Known as the Greater Chicagoland area, Chicago-Naperville-Elgin is the third largest metro in the nation. The metro houses 9.5 million people, including 2.7 million residents within the city of Chicago. The number of corporate headquarters in Chicago is second only to New York City and is home to 33 Fortune 500 companies. Thanks to eight commercial and passenger rail lines, the Port of Chicago, three international airports, and a vast network of freeways, Chicago is a major distribution and logistics hub. The local economy and workforce are highly diverse, supported largely by distribution, finance, manufacturing, and high-tech industries. As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago boasts 100 neighborhoods, 77 community areas, 50 wards, and eight major league sports teams, including two MLB teams. Chicago is a leader in reforming public schools, enhancing public safety and security initiatives, providing affordable housing in attractive and economically sound communities, ensuring accessibility for all, and fostering, social, economic, and environmental sustainability (Chicago.gov).
BROKER OF RECORD
STEVEN WEINSTOCK
Illinois Broker of Record
One Mid America Plaza, Suite 200
Oakbrook Terrace, IL 60181
Tel: 630-570-2200
Steven.Weinstock@marcusmillichap.com
License: IL 471.011175
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0370798)
