Location: 280 Shuman Boulevard, Northbrook,Illinois
Type of Property: The subject property is atwo-story glass and concrete constructed multi-tenant office building.
Net Rentable Building Area: 67,360 ± square feet
Site Area: 238,709 + square feet, or 5.48 +acres
Land-to-Building Ratio: 3.54 to 1 (Basedon Above Grade Area)
Building Age: Constructed in 1979, Renovated in 1993.
Zoning: ORI, Office, Research and LightIndustry District
Highest and Best Use: As Vacant – To hold for future office development.
As Improved – For existing multi-tenant office use. Renovated common areas, conference room, exterior landscaping
The subject property is a two-story glass and concrete constructed multi-tenant office building built in 1979. The building contains a net rentable building area of 67,360 square feet. The property is located along Shuman Boulevard in Naperville. As of the date of appraisal, the subject property is 69 percent leased to 16 tenants. As discussed in the Market Analysis section of this report, according to the First Quarter 2019 CBRE vacancy data, the direct office vacancy rate in the Chicago metro area was approximately 14.5 percent. The direct overall vacancy rate is 12.0 percent for the CBD and 17.9 percent for the Suburbs. The subject property is located in the East-West Tollway office submarket. According to First Quarter 2019 CBRE Market Index Brief, this market contains approximately 31.3 million square feet of space, of which approximately 16.3 percent is currently vacant. Vacancy at the comparable rental properties range from 10 to 86 percent. The overall office availability rate for the East-West Tollway submarket was reported to be 17.5 percent including sublease space which is indicative of this market losing tenants to the O’Hare submarket and downtown Chicago as companies struggle to retain and attract workforce talent. The subject benefits from its location near a four-way interchange with I-88, however, it lacks public transportation options that have become significantly more important for retaining talent that more increasingly lives in the city and has employment options in the city.
In our opinion, the most likely buyer of the property would be a local real estate investment firm or partnership. Assuming that the subject property was aggressively marketed, we believe that it could be sold for the appraised value within a period of 12 to 24 months.