Tenants Still Covet Top Suburban Offices
CHICAGO—The suburbs may have lost Motorola andCapital One, but some areas are still proving attractive to users. The north suburbs, for example, have gained momentum for five consecutive quarters and class A properties there have fared especially well. NAI Hiffman helped illustrated this by completing three transactions at Bannockburn Corporate Center that have brought the 206,000 square foot office asset from 38% occupied since the firm took over leasing and management in August of 2014, to a 91% occupancy today.
Donlen Corp., a Hertz Co., signed a new lease for more than 70,000 square feet; another tenant, a healthcare company, signed a lease for over 47,000 square feet. And Parus Holdings, a communications technology company will relocate to 4,800 square feet within the building.
California-based Younan Properties Inc. bought the property back in 2006 when the market was hitting its zenith, but lost it to foreclosure when the economy collapsed.
“Bannockburn Corporate Center is a premier, class A office asset in a great location within the North Suburban submarket. It has been a tremendous project to work on, and we are thrilled by the rapid increase in interest and leasing results,” says Linda Garske, senior vice president with NAI Hiffman’s office services team.
The team has had other recent successes in the area. As reported in GlobeSt.com, in early 2013, NAI Hiffman took over leasing duties at Edens Corporate Center in Northbrook. And by February of last year, the company had signed a series of new leases and renewals at the 188,000 square foot center and increased occupancy from 60% to over 90%.
“The North market ended the third quarter of 2015 with 20.7% overall vacancy, an ample improvement from 21.4% in the previous quarter,” according to Colliers International. “Class A product is responsible for the majority of the decrease in vacancy as it fell to 24.1% in the third quarter compared to 25% in the previous quarter. When considering high quality, true class A assets, the improvement in vacancy is more significant at 17%, compared to 19.6 in the previous quarter.”
Bannockburn Corporate Center, located at 3000 Lakeside Dr. in Bannockburn, is a 3-story office building set in a campus-like setting, with trees and a pond along the entrance.
Garske and Michael Flynn, also with the office services group, represented 3000 Lakeside Dr. in all three transactions. John Conerty and Eric Feinberg of Savills-Studley represented Donlen; Mike Webber of Advocate Commercial represented the healthcare company; and Steve Schneider ofCushman & Wakefield represented Parus Holdings.