DHL INDUSTRIAL LEASE
In May 2011, DHL, a long term client of Jeanne Rogers,
SIOR, CCIM, asked her to research the market to
determine if there were any buildings/locations that would
handle an expansion to better suit its business needs.
DHL was also trying to determine if it should do an early
lease renewal for its lease ending in October 2013.
After an extensive market search of current or future
available properties it was determined that there were no
buildings currently or expected to be on the market that
would fulfill their requirements; but there were three land
sites with approximately 20 acres that could work as sites
for a build-to-suit.
Unfortunately, the multi-level approval process took
longer than expected, and after submitting the proposals
for the build-to-suit to DHL for final approval, approval to
JOHN T. CASSIDY,
LEE & ASSOCIATES
DES PLAINES, ILL.
ARTHUR J. ROGERS & CO.
ELK GROVE VILLAGE, ILL.
go ahead with the project was not obtained. In January 2013, running short on time to complete a build-to-suit before the lease ended, DHL decided to finalize a favorable early lease renewal for three years with the current Landlord. This lease renewal included a termination clause that gave DHL the flexibility to terminate its lease with 12 months’ notice with a significant termination fee.
In February 2013, Lee & Associates’ client, Aeroterm, approached them and felt they could make this build-to-suit work financially for DHL, along with absorbing the termination fee. Aeroterm had a site adjacent to O’Hare Airport, owned by O’Hare Airport, with a City of Chicago address. Aeroterm had controlled this leased land site for many years and knew that DHL was one of the few companies that would benefit from the immediate proximity to O’Hare Airport. With the almost four years avaliable to design the building, present it for DHL’s Board of Directors, get approval, and secure real estate tax 6B incentives from the City of Chicago, DHL’s real estate department ultimately agreed to work with Aeroterm.
-Determine if they should renew or relocate to a larger and better suited building and location. -Locate a facility that is better suited for their current business and future expansion. -Locate a facility that is located
within close proximity to O’Hare
The persistence of the SIOR
brokers kept this transaction alive
and moving forward despite the
many roadblocks that appeared.
As a result of everyone’s diligence,
DHL will be moving into their new
491,120-square-foot facility that
meets their current and future needs.