6605 West Steger Road
- 6605 West Steger Road, Monee, IL 60449
- Property Type:
- Multi Tenant
- Cap Rate:
- 6.70% cap
- Square Feet:
- 15,000 sqft
- Lot Size:
- 10 acres
- Price Per Square Foot:
- Year Built:
- Property Sits on a Total of 10 Acres, Including Six for Future Development Opportunity
- High Barrier-to-Entry Submarket with Vacancy Down 2.5% Year-Over-Year
- Less Than Two Miles from I-57 Exit Making the Location Extremely Accessible to the Chicagoland Area
- The Immediate Surrounding Area is Seeing Rapid Growth and Investment from Major Logistics Facilities
- High-Growth Area with 9.6% Rent Increase Year-Over Year
- Divisible Property with Seven Drive-In Doors
- Long-Term Main Tenant, Cardno, Two Years Into a Seven Year NNN Lease
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6605 West Steger Road in Monee, Illinois, anchored by Cardno. The subject property consists of approximately 15,000 square feet of warehouse space and is situated on 10 acres of land. The divisible asset features seven drive-in doors and six acres for future development opportunity. Located less than two miles from Interstate 57, the property is extremely accessible to the Chicagoland area. In August 2020, Cardno renewed their lease for an additional seven-years. Since 1945, Cardno has provided global infrastructure, environmental, and social development. Today, the firm maintains operations in 109 offices throughout the world.
The subject property is located in Far South Cook, a large submarket containing 32.4 million square feet of industrial space. At 70 percent, logistics facilities account for the largest proportion of local inventory, and have rapidly been developed in the area in recent years. For example, two Amazon distribution centers, totaling 1.8 million square feet were delivered in 2021. Over the last four quarters, the vacancy rate fell from 6.3 percent to just 3.8 percent by the end Q2 2022. As a high barrier-to-entry submarket, Far South Cook has experience record annual rent growth of 9.6 percent during this time. Industrial rents now average $6.31 per square foot, offering tenants nearly a 26 percent discount compared to the overall market. While the 1.2 million square feet of industrial space currently underway is set to expand the inventory by 3.7 percent, strong absorption rates are expected to keep a lid on the vacancy rate in the near term (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).