Firm Leases 178,250 SF at Bailly Ridge

MONEE, IL-Jacobson Cos. has relocated to 178,250 square feet at 25810 Ridgeland Ave. The third party logistics firm signed a five-year lease for the space in the 432,000-square-foot building, which was completed by LFI in December.

Jacobson was represented by Mike Svoboda, SVP with CB Richard Ellis, while LFI was represented by Traci Buckingham, first VP with CBRE.

“It’s along Interstate 57, and the access into the city of Chicago was one of the drivers,” Buckingham tells GlobeSt.com. “It’s located right at Interstate 57 and the Monee-Manhattan interchange that is being improved, which is going to do a lot for the area. The one other thing that’s impacting the area is that they’re finally connecting interstates 294 and 57 about eight miles north of here, which will have a very strong impact and make accessibility much easier.”

Jacobson’s building sits on 24 acres and offers 32-foot clear ceilings, ESFR sprinklers, and up to 15 docks, 25 trailer stalls and 76 parking spots. Buckingham declined to disclose Jacobson’s lease rate, and said there is no asking lease rate for the space. “You’re seeing that a lot down there, where there’s no asking lease rate and they’re floating based on what the tenants’ needs are,” Buckingham says.

Jacobson’s new property is part of the Bailly Ridge Corporate Center, which consists for 412 acres that LFI has owned for decades. Most of the land is currently being used as an active nursery, but all of it will eventually be developed as part of the industrial park. In addition to Jacobson’s building, the park also offers a 720,000-square-foot build-to-suit completed for Michelin, which LFI has since sold to a state teacher’s pension fund.

The property is in the south suburbs, where overall occupancy is around 88%, according to Cushman & Wakefield’s Q1 industrial market report. Average asking lease rates in the submarket range from $5 to $8 per square foot net, according to Cushman’s research. “We just got this deal done at the building and are looking at other deals, so activity has still been pretty strong given the state of the economy,” Buckingham says.