Chicago Industrial Properties Features Brazeal, CenterPoint as ‘Key Player’ in Chicagoland Development

Michael Brazeal, CenterPoint's Manager of Development Transactions in the Central Region, offered market insights for an article, "Chicago's Warehouse Development Boom: A Look at Key Players Leading the Charge," in the September/October issue of Chicago Industrial Properties Journal.

Michael discusses the market's demand drivers and CenterPoint's emphasis on community engagement, and he touts the newest Class A in the Central Region portfolio, the 976k SF warehouse next to the Houbolt Road Extension bridge at 2903 Schweitzer Rd. in Joliet.

CIP: Chicago saw record-breaking warehouse development in 2023. What factors are drove this demand and how are they shaping the region as a distribution hub?

Michael Brazeal: Several factors fueled Chicago's warehouse development boom in 2023. Some are new, while others are long-standing reasons behind Chicagoland's emergence as a major logistics hub. On the newer side, the continued growth of e-commerce has led to updated inventory strategies aimed at preventing the supply chain disruptions the nation and the world experienced during the pandemic. Chicagoland's long-standing advantages include its central U.S. geographic location - within a one-day drive of 75% of the U.S. population - and its large local population, which provides a strong labor pool for distribution and manufacturing sectors.

CIP: With e-commerce growth forecast to continue at a rapid pace, how do you see the demand for logistics space evolving in the next five years?

Michael Brazeal: In the short-term, warehouse demand may slow due to uncertainty surrounding the upcoming election. However, we anticipate demand will rise in several key areas once it passes. Drivers of this growth will include the need for infill warehouse locations, sustainable and green facilities, automated warehousing, and increased cold storage capacity. As available infill sites diminish, demand will likely shift toward redeveloping older properties to meet the modern requirements of today's tenants.

CIP: As local governments (like Deerfield, IL) restrict warehouse developments, how do you work with communities and policymakers to strike a balance between economic growth and community well-being?

Michael Brazeal: CenterPoint's development teams across the country actively engage with the communities in which we operate, promote sustainable development, and align economic benefits with local priorities. Developers can strike a balance between fostering economic growth and maintaining community well-being, even in areas with restrictions on warehouse developments. A few of the ways we approach striking that balance include:

• Engaging early in the development process with community stakeholders, hearing and being open to their concerns.
• Highlighting the economic benefits of our projects - job creation, local business support, etc.,
• Incorporating sustainable development practices, which is often a decisive factor for communities and customers alike,
• Committing to infrastructure investments in the community, when possible,
• Redeveloping existing sites as alternatives to new developments,
• Being flexible with local regulations and policies when planning a project.

CIP: Are you working on any projects you'd like us to highlight?

Michael Brazeal: We have a newly completed 976,954 SF speculative building available for lease at 2903 Schweitzer Road in Joliet, IL in the CenterPoint Intermodal Center. The Class A facility is adjacent to the Houbolt Road Extension bridge, putting it mere minutes from I-80. NAI Hiffman'sDan Leahy and Adam Roth are representing CenterPoint in that leasing effort, as they do with all CIC - Joliet/Elwood properties.

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