Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3405 Lonergan Drive in Rockford, Illinois. The subject property consists of approximately 13,300 square feet of industrial space and is situated on a total of 1.14 acres of land across two parcels. The single-tenant asset features one dock-high door, two grade-level doors (including a truck well), masonry construction, and a clear height between 16’ to 17’ feet. For sale as vacant, buyers can acquire the property for owner use or as a lease-up opportunity. At $47 per square foot, the property is priced well below replacement costs. Positioned along Alpine Road, the property has proximate access to Interstate 39 via U.S. Highway 20.
The subject property sits within the Interstate 39 Corridor/Winnebago County submarket containing a sizeable 38.8 million square feet of industrial space. During 2023, the vacancy rate rose 310 basis points to 9.2 percent as net absorption contracted by the most since 2008 with -1.2 million square feet. While relatively high, the vacancy rate remained within range of the 8.3 percent 10-year average. Despite slowing down to 5.8 percent, the asking rent growth in the submarket continued to outpace the Consumer Price Index in 2023. With regards to supply, there were no deliveries on net last year and there were only 230,000 square feet of industrial space under construction at the start of 2024. The lack of new supply will help keep a lid on vacancies as demand continues to be impacted by high interest rates (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: 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: ZAE0370567)
