Client Served
challenge
Following completion of a network optimization study that established the Joliet, Illinois (Chicago) area as the most beneficial area to locate a distribution center, CRA was engaged to identify all available warehouse buildings in the selected search area that met the minimum search criteria. This requirement occurred as a result of a decision to consolidate warehousing related to multiple acquisitions made by Post Consumer Brands.
Solution
CRA evaluated all warehousing options including build-to-suit options due to a lack of availability of “big box” space in the selected search area. The comparison evaluated the total cost of occupancy including base rental rates, operating expenses and all tax and economic incentives. Ultimately, the search focused on a 1 million square foot plus big box building under construction in a new industrial park located along Interstate 55 in Wilmington, Illinois. With new infrastructure and beneficial amenities, the industrial park offered an ideal long-term location with the added economic benefit of significantly reduced property taxes.
Benefit
CRA finalized a medium-term lease with the selected building in Wilmington, Illinois. The negotiated agreement provided a rental rate structure in a new building that was well below market conditions for existing buildings and included significant free rent and an extremely large tenant improvement allowance for both base building improvements and discretionary tenant improvements in the building. Post Consumer Brands also benefited from economic incentives which included reduced property taxes for an extended period of time.