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tag Industrial has made a significant move in the Chicagoland industrial market, acquiring five warehouse buildings totaling 726,000 square feet for $74 million. The properties, located in DuPage and Will counties, were previously owned by a fund managed by CBRE Investment Management, which had purchased them as part of a larger portfolio in 2017.

    The sale allows CBRE to cash out on most of its holdings from that purchase, with the exception of a large building in Joliet, which it still owns and is marketing for lease. The reason behind CBRE's decision to retain this asset is unclear.

    This deal comes as industrial property values continue to rise across the nation, driven by increased demand due to the pandemic and online shopping. However, development in the Chicago area has helped to mitigate this trend, with a steady vacancy rate of 4.88% in the third quarter despite a drop in leasing activity.

    The acquisition also highlights the growing importance of mid-sized spaces, which are being sought after by tenants. Build-to-suit projects dominate the development pipeline, making up 80% of new construction. The properties sold to Stag Industrial include three adjacent buildings in New Lenox and two others in Aurora and Carol Stream.