Ecommerce stores warehouse

Warehouse developer to buy Allstate campus

If the deal goes through, Dermody will likely look to radically transform a corporate campus at 2775 Sanders Rd. Which Allstate has called home since 1967. Allstate revealed last month that it plans to sell the property and its few. 1.9 million square feet of buildings as it embraces the rise of remote working brought on by the COVID-19 pandemic, although he said the company will maintain a “significant presence in the Chicago area” .

The sale would reflect the staggering impact the public health crisis has had on the commercial real estate landscape, with the office sector in shock and investors’ seemingly insatiable appetite for industrial properties. The number of vacant offices has hit an all-time high as many businesses rethink their workspace needs after adjusting to life with people working from home. Meanwhile, a rush of companies has been entering the warehouse space market, driving the local industrial vacancy to near record highs even as developers and major e-commerce players like Amazon have embarked on the market. a wave of construction in densely populated areas.

Selling over $ 25 per square foot for the property would be a steep price for the land – the Chicago Bears are under contract to pay significantly less per square foot for the 326-acre Arlington International Racecourse property in the northwest suburb of Arlington Heights – but that might be in line with what buyers were willing to pay for other large warehouse development sites in the Chicago area, several industrial investors have said.

Still, redeveloping the Allstate property with warehouses could present some hurdles, including gaining community support for such a project. Any major overhaul of the land, which is located in unincorporated Cook County, would likely be scrutinized by officials in Glenview and Northbrook to assess the impact on their communities. This has been a major source of tension as the developers have sought to build warehouses in other parts of the Chicago area as residents fear such projects could bring with them an onslaught of trucks that create both pollution and traffic jams.

However, a long-time Glenview company, Abt Electronics, has gained approval and is building over 400,000 square feet of new warehouse space adjacent to its existing warehouse and store at 1200 N. Milwaukee Ave., unless three kilometers south of the Allstate campus. along Interstate 294.

A spokeswoman for Dermody declined to comment. Spokespeople for Allstate and the villages of Glenview and Northbrook could not be reached.

It’s unclear what the sale of the entire campus would mean for Allstate employees in the northern suburbs. The company said last month that its employees will continue to be able to work from the downtown Allstate offices to the Merchandise Mart, but it has provided no information as to whether it still plans to have a large presence. office in the suburbs.

Allstate said last year it was cutting about 8% of its workforce, or about 3,800 employees, as part of a cost-cutting operation to become more price competitive. The company has nearly 7,900 employees in Illinois, according to its website.

Dermody, who has developed several large warehouses in the Chicago area, knows Glenview well. The company previously entered into an agreement to purchase property at 3600 and 3700 West Lake Ave. in the suburb of the Signode packaging company for $ 24 million with a plan to demolish three buildings on the property and construct three new warehouses totaling 825,000 square feet. Dermody requested property tax relief last year for the development, although the status of the project is not immediately clear.

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