Active Local Real Estate Market Bodes Well for DuPage County

LISLE, IL – Today, Choose DuPage released its 2016 Second Quarter Economic Indicators Report showing a successful performance for the county during the first half of 2016. DuPage County has experienced notable real estate dealings and vacancy absorption, while its low unemployment rate confirms the county’s robust economic environment. Investors continue to see the DuPage market as desirable with its proximity to transportation, skilled workforce and opportunity for further growth. Earlier this month, Zeller Realty Group announced its $125M purchase of Oak Brook’s Commerce Plaza, a Class-A office complex and the largest deal in Chicago's suburbs in more than a year.

2016 Mid-Year Review Highlights:

· DuPage County continues to maintain the lowest unemployment rate in the Chicagoland region at 5.1%; far below the City of Chicago’s 6.5% and state’s 6.0% unemployment rate.

· DuPage County industrial vacancy rates have decreased to 5.0% compared to 5.7% at the same time in 2015; over 4.3 million square feet of industrial space has been absorbed in the first six months of 2016 showing strong industrial development.

· DuPage County office vacancy rates have also decreased by 0.9% over the past year with over 1.2 million square feet of office space being absorbed over the first quarter and second quarters; space is being acquired by new businesses moving into the area as well as the expansion of existing DuPage businesses.

· DuPage County continues to attract premier tenants and property developers without the use of incentives; DuPage is home to two of the largest suburban deals of 2016 with the $125M Zeller Realty Group purchase of the 515k square foot Commerce Plaza and the purchase of Mid America Plaza for $80M; both properties located in the Oak Brook market.

“DuPage County’s continued solid economic performance during the first half of the year confirms the strength of the county’s business climate,” said John Carpenter, president and CEO of Choose DuPage. “DuPage has some of the most stable markets in the region, new businesses are making DuPage their home while local industries continue to expand and grow their footprint.”

During the first half of 2016, a combined total of more than 5.5 million net square feet of office and industrial space was absorbed throughout DuPage County. The Lisle-Naperville markets reported their lowest overall vacancy rate in the second quarter citing business expansions including local accounting and technology firm Sikich which has increased its total footprint in Naperville by 50 percent. The Washington Commons office complex in Naperville recently sold for $18 million to a California real estate firm that plans to upgrade and build out the move-in-ready suites to further attract businesses to the building.

Despite McDonald’s Corporation planned relocation to Chicago, the Oak Brook market has recently experienced increased investment with large real estate dealings including the previously mentioned purchases of the Mid America Plaza in Oakbrook Terrace and Commerce Plaza. Other notable developments include Ryan Companies’ purchase of an 11-acre Oak Brook property which it plans to transform into a major 300,000 to 400,000 square foot multi-building office development, and Schaumburg-based REM Builders redevelopment of a 60,000 square foot office space at 2100 Swift Rd. that involves modernizing the three story building to achieve Class-A status. New developments and the continued prosperity of small to mid-sized business have led the Oak Brook market to reach a seven year low in overall vacancy.