Marina Crossings Filling Up As More Tenants Seek Out Chicago Spaces
First Logistics recently agreed to a 108K SF lease expansion at Marina Crossings, a 633K SF facility completed late last year at 2075 West 43rd St. on Chicago's South Side.
The Alsip, Illinois-based 3PL now occupies 440K SF in the building.
The expansion continues a healthy streak of leasing activity on the South Side, where demand for quick deliveries is fueling the rise of a new market for modern distribution space.
"In the Chicago South submarket, net absorption during the third quarter of 2019 totaled 441K SF, the strongest demand recorded in a single quarter in two years," according to Colliers International.
That brought total net absorption on the South Side to almost 1M SF year-to-date, and the vacancy rate sank to 8.8%, a drop of 78 basis points from the end of 2018.
Developers are rushing in to satisfy the demand, and many feel confident enough to launch speculative projects.
Marina Crossings, developed by a joint venture between MAT Limited Partnership and institutional investors advised by J.P. Morgan Asset Management, was the city's largest speculative project since builders broke ground on the Central Manufacturing District in 1905. The building still has 198K SF available for lease.
Two more South Side spec projects broke ground during Q3, according to Colliers. Ryan Cos. began a 400K SF building at its Pullman Crossings business park in the historic Pullman neighborhood, and NorthPoint Development started construction of a 359K SF building nearby at 11600 South Avenue O.
Cushman & Wakefield’s Larry Goldwasser, Jason West, Colin Green, Matt Cowie and Michelle Maguire represented Marina Crossings in the latest lease negotiations. Larry Hanley of Midwest Commercial Real Estate represented First Logistics.
