D
ermody Properties is facing significant leasing challenges at its $500 million Logistics Campus in Glenview, a 232-acre former Allstate headquarters. The first phase of redevelopment was completed last October, but the site remains mostly vacant due to slower-than-expected market demand.

    The campus, located near Interstate 294 and the Wisconsin border, features five warehouses spanning over 1 million square feet and was designed as an e-commerce and distribution hub. However, California-based Upside Foods paused its plans to build a large-scale cultivated meat facility in February, leaving the campus without an anchor tenant.

    Overdevelopment during the pandemic has led to an excess of vacant warehouse space in Chicago, with leasing activity dropping to its lowest point since 2005. The vacancy rate sits at around 5.5 percent, and sublease availability has reached an all-time high of 13.4 million square feet.

    Despite these challenges, Dermody is moving forward with plans for the campus' second phase. Industry experts remain optimistic about the site's potential, citing its strategic location as a major draw for potential tenants.