18130-18134 Northwest Frontage Road
- 18130-18134 Northwest Frontage Road, Shorewood, IL 60404
- Property Type:
- Multi Tenant
- Cap Rate:
- 9.54% cap
- Square Feet:
- 16,400 sqft
- Lot Size:
- 3.18 acres
- Price Per Square Foot:
- Year Built:
- Under-Market Rents with Short Lease Remaining Creates Value-Add Investment
- 3+ Acre Lot Leaves Ample Room for Outside Storage Space
- Low Will County Taxes
- High Growth Submarket Average Rent Up 9.6% Year-Over-Year
- Each Industrial Suite Has Its Own Drive-In Door
- 2.5 Miles from I-55 Entrance, the Joliet Area’s Main Expressway
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 18130 to 18134 Northwest Frontage Road in Shorewood, Illinois. The subject property consists of approximately 16,400 square feet of warehouse space and is situated on 3.18 acres of land. The seven-suite asset features individual drive-in doors and ample room for outside storage space. With short-term leases in place priced under the current market rate, the fully occupied asset creates a value-add investment opportunity. Situated in Will County, the property benefits from low taxes relative to neighboring jurisdictions. Located just 2.5 miles from Interstate 55, the property is well positioned to the main expressway in the Joliet area.
The subject property is located within the Joliet submarket, containing a massive 98.8 million square feet of industrial space. Joliet’s unmatched accessibility attracts third-party logistics companies and manufacturers seeking distribution hubs. Two large intermodal terminals, the BNSF Logistics Park Chicago and UP Joliet Intermodal, anchor the local economy. Both of these intermodal terminals play a key role in facilitating trade between Asia and the Midwest, thanks to direct rail access to all major West Coast port markets. The Joliet submarket has experienced significant growth over the last year, with net absorption clocking in 4.7 million square feet, representing over 10 percent of absorption in the entire Chicago industrial market. The vacancy rate was only 3.3 percent at the end of Q2 2022, sitting well below the 8.5 percent five-year average. With supply tightening, market rents grew at a record pace of 9.7 percent year-over-year during the second quarter. There were 9 million square feet of industrial space under construction to start Q3, representing a sizeable 9.1 percent of inventory. However, essentially all of the new space is concentrated in properties over 100,000 square feet and will not directly impact vacancies or rent growth for shallow-bay warehouses (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).