What's Happening?
The Logistics Campus in Glenview, Illinois, has secured a lease agreement with Pepsi Beverages for a 351,520-square-foot warehouse. This development marks the second major tenant for the site, which was formerly the Allstate campus. Dermody Properties, the developer, announced the deal, highlighting the strategic location of the campus in one of Chicago's active submarkets. The lease is set to begin in February, with construction underway for the warehouse, which is part of the planned second phase of the logistics park. The first phase of the development, consisting of five buildings, has seen slow leasing activity, with only one tenant, HuFriedyGroup, having signed a lease earlier this year. Pepsi's new facility aims to enhance its distribution capabilities in the region.
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Why It's Important?
The agreement with Pepsi Beverages is significant as it represents a major step in the development of The Logistics Campus, potentially boosting local economic activity and job creation. The project is part of a larger $500 million initiative to transform the former Allstate site into a major logistics hub. This development could attract more businesses to the area, contributing to the recovery of the industrial leasing market, which has been sluggish post-pandemic. The presence of a major company like Pepsi could signal renewed confidence in the market, encouraging further investment and development in the region.
What's Next?
Dermody Properties continues to seek tenants for the remaining warehouses in the first phase of the development. The company is engaging with potential clients who require more than just storage space, indicating a focus on businesses with complex logistics needs. As the industrial leasing market shows signs of recovery, Dermody is optimistic about attracting more tenants. The completion of Pepsi's warehouse is expected by the first quarter of next year, which could further stimulate interest in the logistics park.
