JLL Chicago Industrial Real Time

Episode 46 is live visiting with the principals of Timber Hill Group: Founder Cary Goldman, partner Ryan Battistoni and Marty Siegel along with Robin Stolberg from JLL. Topics include Background on JLL's Industrial Service Facilities (ISF) Practice Group ISF is a niche area of transportation and logistics real estate. How JLL Research classifies the various industrial property subtypes. Learn about Managed Truck Parking Hear about Timber Hill's National Truck Parking platform Consideration for the electrification of truck fleets.

Tune in to hear why the Midwest industrial market's fundamentals are strong from land availability, rail access, and the ability to reach large portions of the east coast and central region's population base. The 2022 outlook covers insights and key trends impacting the Midwest industrial markets, including:

• A modern bulk overview
• Rising tenant demand
• Supply and demand across the region
• Outlook for the remainder of 2022

We are joined by Sam Stouffer, JLL Columbus research manager and lead author of the Midwest industrial report and Mike Cagna, JLL Indianapolis research manager.

Click to download the report

For additional listening, check out Episode 37, covering the 2021 Midwest Industrial Outlook and see how the market has changed over the last 12 months.

Episode 44 is live on location from71st Street in Bedford Park, Illinois home of CSX Transportation, known as the largest freight railroad in the Eastern U.S.

We are joined by Tom Livingston, the Head of State Government Relations and Community Affairs for CSX Transportation, who shares his insights and expertise on freight rail operations and shipping across the company's network.

Show Notes

2:25 Tom portrayed Chief Iliniwek during his time at University of Illinois

5:25 Some of the notable ports that CSX services are, New York/ New Jersey, Baltimore, Hampton Roads, Charleston, Savannah and JaxPort in addition to various inland ports.

11:05 Companies are focusing on the greening of their supply chains and moving freight on rail helps with ESG considerations.

12:55 Chicago is the Super Bowl for railroads

15:10 Bedford Park handles a lot of intermodal volume for the parcel shipping companies.

16:05 JLL was involved in the sale of a building on 71st Street which CSX acquired for future expansion of their facility.

27:30 The 71st Street facility does about 900,000 lifts and the 59th Street Facility does about 400,000 lifts per year.

31:00 Shifting freight off the roads and onto rail has a tremendous public benefit in reducing wear and tear on roads

33:00 Transportation Secretary Pete Buttigieg visited CSX Bedford Park to discuss the importance of infrastructure investment

37:20 As part of the CREATE Program, CSX will build a flyover along the 75th Street Corridor to alleviate congestion

Chad, George, and Brian Carroll join Josh Grozdin, Director of Business Development and Marketing for Elk Grove Village on the Strictly Business Podcast for Episode 53. The Village's industrial vacancy rate at the end of 2021 was a historic low of 2.36%. Find out why the demand for industrial space is thriving and hear about some notable transactions and trends. Check out other episodes of Strictly Business including the JLL's teams last appearance on Episode 35

Episode 42, is live on location at 3711 S Ashland Avenue Chicago, the new home of Aviation Institute of Maintenance, a technical school offering offer hands-on training for full service aircraft repair and maintenance. We are joined by Ben Fish from Logistics Property Company to tell us about the building and development process. Brad Wood from JLL's Project and Development Services team tours us through the classrooms, hangar, and welding room. Then hear from Gavin Stainthorpe and Michael Conway on the site selection process, the tenant's unique requirements, and why they selected the location in the City of Chicago.

1:35- Introduction to the Chicago Stockyards Industrial Park.

3:10- Walk through the corridors of the facility to view the classrooms, computer lab, student resource library, and faculty offices.

6:50- Step into the hangar to see the various aircraft.

9:37- All the columns have compressed air drops and coil reels for pneumatic tools like you would see in a service garage

13:00- View the welding lab area which has its own self-contained exhaust system.

15:05- Step into the composition lab which will be used for working on aircraft fiberglass repairs and modification.

17:25- Ben Fish explains why LPC was attracted to the site, "we could almost see our office building downtown from this location."

21:20- The mural on the west side of the building along Ashland Avenue is as part of a public art initiative on new developments in the 11th Ward.

24:40- Michael Conway and Gavin Stainthorpe give background on the tenant's requirement and their search across Illinois and Indiana and the need to find a building with sufficient parking.

28:30- The facility did not need to be next to airport and instead focused on population density and the ability to attract students from not only the City of Chicago but all across the metro area.

Episode 41 features Dean Brody to discuss truck terminals and their role in movement of goods. This episode introduces a recent whitepaper: Driving Forward which describes the background of truck terminals, how they fit into the supply chain as well as building characteristics, development considerations, and investment trends.

Click to download the report.

Reggie Greenwood, Executive Director of the Chicago Southland Economic Development Corporation and Scott Duerkop join the podcast to discuss the unique logistics and transportation assets and industrial site opportunities in the region.

Show Notes

2:20 Defining the geography of "Chicago Southland" which encompasses South Chicago, South Cook County, Eastern Will County and the I-57 and IL-394 Corridors.

4:00 The recent sale of the Balmoral Horse Racing Track in Crete could be a potential industrial development site.

7:25 The CN Intermodal terminal in Harvey is a major transportation hub in the region.

8:50: Scannell Properties has acquired 140 acres in Tinley Park for the development of up to three buildings.

11:25 Governors State University has a Supply Chain Innovation Center to help with job training and recruitment.

16:00 The construction of a South Suburban Cargo Airport could lead to the development of more industrial facilities.

23:30 Two large E-commerce fulfillment centers have opened in South Cook County in Markham and Matteson.

25:30 The new full interchange at I-57 & I-294 has contributed to the success of the region as a whole.

33:50 Housing prices have increased substantially across region in the last year.

In this episode, Chad and George join David Bodamer, host of Wealth Management Real Estate's Common Area Podcast to discuss some areas within the industrial world you may not think about such as cold storage, truck terminals and transloading and how they are currently changing and adapting to the technology-based world we live in today

As e-commerce continues to change the way we live our day-to-day lives, there have been some major impacts in the world of transportation and distribution that are reshaping the industrial and logistics market.

Chad and George discuss:

• How the pandemic has affected distribution and increased demand for more advanced and adaptable delivery systems throughout the world
• What transloading is and why it works
• New delivery developments such as 15-minute grocery delivery services in New York City
• Emerging niche markets and how they are creating competition for major big-box distributors

This supplemental podcast episode is a recording of our April 2021 Chicago Industrial Market Perspective Client Webcast. Hear from a panel of JLL professionals on various segments of the market including land pricing, urban logistics, construction, and capital markets and more.

0:50 Introduction from John Picchiotti, Chicago Industrial Market Lead.

2:07 George Cutro, Director of Research, provides a recap of first quarter statistics and positive trends including falling vacancies and leasing volume growing across all size segments.

9:01 Kris Bjorson, Head of Retail /Ecommerce Distribution, discusses how customer service and transportation impact site selection decisions.

14:13 Keith Stauber, Managing Director, runs through recent big box market activity and explains how the supply and demand imbalance has drastically shifted in the I-55, I-80 and I-57 submarkets.

22:02 Conor Mullady, Senior Vice President, covers land pricing ranges across the Tri-State market and how entitlements and utility availability impacts the development potential of a site.

28:09 Michael Conway , Vice President, reviews last mile and urban logistics trends within the City of Chicago.

34:53 Sam Durkin, Executive Vice President of JLL Industrial Services, describes how the limited pool of Class A inventory and growing deal sizes across the infill markets are leading to steady rent growth.

41:48 Rick Steger, Head of Industrial Project and Development Services, touches on construction pricing and lead times impacting the delivery of building materials.

46:10 John Huguenard, US Industrial Capital Markets lead, closes the webcast with highlights on cap rate compression and how the depth of the buyer pool has grown for limited industrial offerings.

This is Episode 37 recapping the JLL 2021 Midwest Industrial Outlook Report which provides insight into 14 markets across the nation's heartland region. The report focuses solely on modern bulk distribution product with an emphasis on the top tenants, institutional developers, and investors. The report also includes findings from a survey from the field of JLL professionals in each market. Questions were focused on the state of each market's institutional product both currently under construction and the pipeline for the next 12 months.

1:35: Introduction of how JLL defines institutional grade modern bulk or "Big Box" warehouse product

4:03: Modern bulk product accounted for 70% of the overall net absorption since 2016 across the Midwest

7:40: Tenants are signing leases with phased in occupancy with plans to grow into a large space.

10:40: Survey respondents are expecting a 15% increase in tenant demand in 2021

11:22: The interactive dashboards in the report allow us to understand trends and see which investors and tenant industries are active across the different markets

13:00: Looking at 2020 figures, Chicago, Columbus and Indianapolis set records for construction completions

14:35: The owner-user build-to-suit trend is increasing as a result of reshoring

18:31: Land constraints challenge developers to look along the fringe of the market for larger tracts for business park development

21:27: The region benefits from critical transportation infrastructure such as the parcel air hubs, intermodal terminals and inland waterways.

22:30: The Midwest markets can service a large swath of the East Coast population within one day's drive time.

To access a copy of the report, visit our website for the 2021 Midwest Industrial Outlook

https://www.us.jll.com/en/trends-and-insights/research/2021-midwest-industrial-outlook