The return of speculative development in the suburbs has created a slump in commercial build-to-suit construction, with the amount of space being built in that category falling 70 percent from a year ago.
A new survey by the Alter Group shows just 1.3 million square feet of build-to-suit construction completed in the Chicago area in the first half of 1997, compared to more than 4.5 million feet a year ago.
Activity fell in every county in the six-county region. Thomas Boyle, Alter vice president, said the a proliferation of new space on the market has given firms looking for generic facilities plenty of options without having to contract for specific building projects themselves.
Boyle said manufacturing companies especially were wary of taking on build-to-suit projects in a climate of economic uncertainty.
Traveling on
Carlson Wagon Lits Travel, a division of Minneapolis-based CarlsonCompanies, has more than doubled the size of the its Chicago region office and call center.
The corporate travel services firm is now leasing 30,500 square feet at 3601 Algonquin Rd. in Rolling Meadows. The Prime Group, which negotiated the lease for Carlson, said the deal is part of a tenant representation agreement that covers Carlson’s space needs in 35 states.
Theater seating
The Organic/Touchstone Theater Building at 3319 N. Clark St. has been sold to new owners who plan to redevelop the property.
Hallmark & Johnson Properties, which brokered the transaction, said the theaters have relocated to 2851 N. Halsted St. and plan to build a new theater center soon. The old building, constructed in 1910, still houses some retail. No timetable for redevelopment was announced.
Honored guest
The Landmarks Preservation Council of Illinois will honor developer Richard Stein as its “Man of the Year” at its Building Industry Council dinner on Monday, Oct. 27, at the Winter Garden Atrium at the Harold Washington Library in Chicago.
The landmarks council said it chose to honor Stein for his dedication to development, preservation and planning. The group said his projects “generate broad economic and social benefits to communities by helping preserve existing treasures such as the Civic Opera House and Ft. Sheridan’s historic district and by creating new landmarks such as the AT&T Corporate Center, the Metcalfe Federal Building, the University of Chicago Graduate School of Business and the United Center.”
For more information contact the Landmarks Preservation Council at 312-922-1742.
Deal of the week
Ground has been broken on the Tradewinds Business Center, a 110,300-square-foot multi-tenant office/warehouse facility at 300 Terrace Drive in the Terrace Trade Center in Mundelein. The speculative building is being developed by McShane Corp. and Darwin Realty & Development Corp.
The project, on a 6.7-acre site, has already lured KidCo Inc., a maker and distributor of infant goods, to 33,400 square feet. The move, set for the end of the year, represents an expansion for KidCo.
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Chicago Tribune real estate editor Steve Kerch reviews realty news and answers your questions on housing and other topics on The Real Estate Show every Friday from 9:40 to 10 a.m. on Channel 26-WCIU.
