BATAVIA — Mike Antonelli, partner, Brown Commercial Group, Inc., represented Rhondarosa Properties, LLC and the buyer in the sale of an 18,240-square-foot industrial building with outdoor storage at 1306-1330 Pierson Dr. in Batavia.
The buyer was H5P, LLC, a road and snow maintenance company that was expanding and required outdoor storage for its equipment.
“This was a unique industrial property due to the presence of outdoor storage, which is in short supply in the Chicago market and nationally,” Antonelli said. “The seller was able to achieve premium pricing due to the value that outdoor storage provides.”
The Central Kane/DuPage County submarket continues to see strong demand for industrial space and a low 3.6% vacancy. The submarket has a massive inventory base of 62.6 million square feet and had $543 million in sales over the past 12 months, according to CoStar data. Market pricing has jumped by more than 10% in some cases.
Average rents in the Central Kane/ DuPage County submarket are $7.60 per square foot, falling just below the metro average of $7.70. However, that represents a rise of 8.4% over the past year, well above the 4% average over the last three years. As more new buildings are constructed and vacancy flattens, rent growth is expected to moderate in the next three years, according to CoStar.
The submarket had 1.72 million square feet of construction completed over the past eight quarters, ending with Q1 2022 and another 2.62 million square feet in the pipeline. About 2 million square feet is slated for delivery during 2022.