The industrial market has been steady during the past year in Central Illinois — an area that includes the cities of Champaign-Urbana, Peoria, Springfield, Decatur, Danville, Mattoon and Bloomington-Normal. Some large corporations that have vacated space and left inventory to be filled include: Firestone in Decatur (2.2 million square feet), NACCO in Danville (381,200 square feet), and ESCO in Danville (89,600 square feet). The balance of the market has been flat with slight increases in leasing activity. Small users are absorbing spaces that are less than 100,000 square feet.

There has been some activity in the high-tech sector in the Champaign-Urbana market, such as the construction of a 100,000-square-foot office in downtown Champaign for Voiltion, a software gaming company. The University of Illinois Research Park in Champaign-Urbana also continues to grow with fourteen tenants and more than 200,000 square feet constructed within the last 2 years.

The ranges of rental rates for triple net leased properties in the Central Illinois area, which vary from market to market, are: $2.75 per square foot to $3.75 per square foot in Champaign-Urbana; $2.50 per square foot to $3.50 per square foot in Peoria; $4 per square foot to $7 per square foot in Springfield; $2 per square foot to 3.50 per square foot in Decatur; $2 per square foot to $3.10 per square foot in Danville; $2.25 per square foot to $3 per square foot in Mattoon; and $3.25 per square foot to $6 per square foot in Bloomington-Normal. The vacancy rate on average for the area is 10 percent.

According to Arthur Thoma Jr., a broker with Coldwell Banker Commercial/Devonshire Realty, activity will pick up along Interstates 74, 55, and 57 as distribution facilities move further south, from the city, to service Chicago, Indianapolis and St. Louis from a central location.


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