MIDDLE MARKET HIGHLIGHT, AUGUST 2005

JANESVILLE
Karen Stone, CCIM

Janesville, a primary market along the Interstate 39 logistics corridor, is benefiting from the construction of Global III, a large intermodal train yard in Rochelle, Illinois, according to Doug Venable, director of economic development for the city of Janesville. Because Interstate 39 is intersected by both the Burlington Northern and Union Pacific rail lines, it is an important transportation corridor for logistics operations. “Since [Global’s construction], demand for warehouse space along the corridor has increased dramatically,” Venable says.

Gallina USA will break ground on a 50,000-square-foot warehouse this summer. Located 1 mile east of Interstate 39 at Exit 175, the $1.7 million building will sit on 7.25 acres and should be complete by year end. Just down the street, BJ Electric Supply completed a 30,000-square-foot distribution center last December.

Last fall, Lowe’s Home Improvement Warehouse leased a 210,000-square-foot building, located west of I-39 at Exit 177, to house a millwork plant for the manufacturing of windows and doors. The plant employs approximately 100 people and represents a $7.1 million investment by Lowe’s during the life of the lease. One mile farther west of the Lowe’s project, Seneca Foods moved into an existing 600,000-square-foot building and added an additional 315,000 square feet in July 2004.

Manufacturing has historically led the economy of Janesville. General Motors is the largest employer with more than 3,900 workers who produce sports utility vehicles. The city has more than 14 million square feet of industrial and distribution space, with an average annual absorption of 350,000 square feet.

“As the economy has picked up, opportunities for regional distribution centers have been knocking,” Venable says. “Because we are located 120 miles northwest of downtown Chicago, we are also strategically positioned to serve growing Chicago markets with lower overall capital and operating costs.” 

The retail sector is seeing activity on the northeast side of town. Plans have been submitted for final zoning approval for a 198,000-square-foot Wal-Mart Supercenter and a 130,000-square-foot Sam’s Warehouse. If approved, the projects are expected to break ground this fall at the intersection of Interstate 90/39 and US Highway 14. This area is an established retail corridor with retailers like Pier 1 Imports, Best Buy, Fuddruckers and Texas Roadhouse.

Janesville’s downtown is becoming a growing arts and entertainment market, stimulated by the $4 million renovation of a former high school auditorium into the Janesville Performing Arts Center. “The center opened last September and we have sold more than 40,000 seats since then,” Venable says. A private developer is also investing more than $1 million to renovate the former City Armory building to accommodate dinner theater productions. Also, the city invested $4.5 million in a new 35,000-square-foot public safety building. And the focus for the future is on  entertainment and housing along the city’s natural landmark, the Rock River.

“The river runs right through our downtown and we are creating more housing along both sides of the river, which are lined with scenic river walks,” Venable says.

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