Brennan's Chicago portfolio now exceeds 11 million square feet
Brennan Investment Group, LLC, a private real estate investment firm that acquires and operates industrial properties on a national basis, announced its acquisition of a 30-building industrial portfolio. The properties, totaling over 2 million square feet, are located primarily in the O’Hare, Near North, and Central DuPage submarkets.
“The Chicago industrial market continues to benefit from strong tenant demand, limited supply by historical standards, and accelerating rent growth. As of the fourth quarter of 2016, the Chicago metropolitan market reached a 20-year high occupancy level of 96.1%, driven, in part, by positive absorption of over 19 million square feet. This marks Chicago’s 26th consecutive quarter of positive absorption,” commented Scott McKibben, Brennan’s Chief Investment Officer and Managing Principal.
“Chicago’s infill submarkets, in particular, have been great beneficiaries of heightened tenant demand,” observed McKibben. “Strong, consistent demand, combined with limited new supply, has contributed to robust rent growth in Chicago’s infill submarkets, outperforming both regional and national rent growth averages. The infill characteristics of this portfolio will enable us to capitalize on these supply and demand dynamics, and execute our value add strategy”.
“The fundamentals of US industrial real estate markets are strong,” said Michael Brennan, Chairman and Managing Principal of Brennan Investment Group. “The demand drivers include e-commerce uses, resurgent manufacturing driven by robotics, together with consumer products demand. Supply had less influence in this cycle as new deliveries from 2008 and 2015 were one third of their historical level. That combination drove the national occupancy level to its all-time high of 95.1% in the fourth quarter of 2016”.
“This acquisition is illustrative of Brennan’s disciplined focus to find value creation opportunities in scale within the nation’s top industrial markets,” remarked Brennan.
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