Mohr to Develop 1 MSF Build-to-Suit Chicagoland Project

Mohr Capital will develop a 1 million-square-foot build-to-suit project in DeKalb, Ill., with the potential of expanding the future distribution facility up to 1.5 million square feet.

Pepper Construction will serve as the general contractor, with CBRE overseeing the development process. Willet Hoffman provided civil engineering services, while Curran Architecture designed the project.

The unidentified tenant signed an agreement for a 12-year lease at the property, located on 147 acres at the intersection of Peace Road and Fairview Drive, about 62 miles east of downtown Chicago. Interstate 88 runs less than 1 mile away, while DeKalb Taylor Municipal Airport is within approximately 2 miles.

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Notably, distribution and logistics company 3M leases two nearby warehouses totaling approximately 1.6 million square feet, and its agreement to occupy the larger 1 million-square-foot property is set to expire next year, according to Yardi Research Data. Meta also operates a $1 billion data center more than 1 mile away.

Mohr Capital develops and acquires industrial, office and retail properties throughout the U.S. Among its recent projects is the Mohr Logistics Park, a 6 million-square-foot master-planned campus in Whiteland, Ind. Last year, Cummins Inc. committed to occupy 1 million square feet at that property.

Chicago’s middling industrial performance

Chicagoland’s industrial rents were up 4.6 percent year-over-year, climbing to $6.53 per square foot in July, below the national average of $8.63, according to the latest Yardi Matrix report. The vacancy rate stood at 12.5 percent, 340 basis points above the U.S. average.

Meanwhile, the market had nearly 9.8 million square feet of industrial space under construction as of July, representing 0.9 percent of stock, the report shows. Development projects in Chicago include DHL’s 1.2 million-square-foot facility in Plainfield, Ill., and CJ Group’s 1.1 million-square-foot property in Elwood, Ill., according to Yardi Research Data.