MIDDLE MARKET HIGHLIGHT, JULY 2006

Champaign/Urbana
Kevin Jeselnik

The Champaign/Urbana metro area has experienced a swell of development activity during the past 2 years. “As far as new construction, we are experiencing record-breaking activity,” says Alex Ruggieri, senior investment advisor at Champaign-based Sperry Van Ness/Ramshaw Real Estate. In Champaign, construction permits showed $212 million in new construction in 2005, approximately $100 million more than in the previous year. Urbana issued $115 million in new construction permits in 2005, also a significant increase year-to-year.

The retail market has absorbed most of the available product, and according to Ruggieri, is “about maxed-out,” as far as available development space in the most popular corridors. In Urbana, Menards recently purchased a 280-acre tract of land with plans for a large-scale mixed-use development. It is expected to begin work on its own store on the site in the immediate future. In general, any large vacancies are due to the robustness of the market, as big box retailers leave one location to move to another, larger space.

The industrial market is not very big, but is strong. Patterson Dental recently built a 300,000-square-foot plant.

In Champaign, Carle Hospital is underway on a significant expansion, as is O’Brien Auto Park, just north of Interstate 74. Construction of a Wal-Mart Supercenter is getting underway, and The Pickus Companies is planning an 18-story apartment complex and grocery store on the site of the former Burnham Hospital.

In Urbana, Snyder Corp. of Bloomington, Illinois, is developing a $17.5 million, 70-unit condominium project at the Urbana Country Club. The condos will be situated within a five-story building, built in two 35-unit phases over 2 years. Just south of Champaign, in Savoy, Evansville, Illinois-based Regency Properties is embarking on a $9 million renovation of its Savoy Plaza, with a new Schnucks grocery store set to open in May 2007 as its central anchor. Along with the 58,000-square-foot Schnucks, the center, which is located at the corner of Curtis Road and U.S. 45, will feature a 6,800-square-foot Buffalo Wild Wings and an additional 25,000 square feet of retail space expected to be ready by the end of the year.

With so much development underway in this already-healthy market, the Champaign/Urbana area is poised for big growth in the coming years.

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