Industrial development thrives along Illinois’ I-80 corridor

From “Industrial development thrives along Illinois’ I-80 corridor” – RE Journals

The I-80 corridor in Illinois, a vital artery for logistics and industrial activity, is experiencing a boom in development fueled by significant infrastructure improvements. With projects like the Houbolt Road extension in Joliet, the region is positioning itself as a prime destination for industrial investments. Experts in the field are optimistic about the opportunities these changes will bring, not only for the logistics industry but also for the local economy and workforce.

“The enhancements made in the I-80 corridor improve road conditions and safety for the region,” said Dan Leahy, executive vice president and partner at NAI Hiffman. “The Houbolt Road Extension provides a more direct path for trucks and cars to access I-80 from the CenterPoint Intermodal Center.”

“Prior to the Houbolt Road Extension project, truck traffic had been a major issue on Route 53 south of I-80,” said Matthew Maul, an industrial broker at Caton Commercial. “Upon completion, the flow of truck traffic has improved dramatically now that you have additional access to the intermodal through Houbolt Road.”

The Houbolt Road extension, part of the Rebuild Illinois capital infrastructure plan, is designed to modernize access to key logistics hubs like the CenterPoint Intermodal Center (CIC). The extension includes a toll bridge over the Des Plaines River and a diverging diamond interchange that alleviates congestion and enhances safety for thousands of drivers daily.

“The enhancements made in the I-80 corridor improve road conditions and safety for the region,” said Dan Leahy, executive vice president and partner at NAI Hiffman. “The Houbolt Road Extension provides a more direct path for trucks and cars to access I-80 from the CenterPoint Intermodal Center.”

Leahy emphasized the importance of this development in improving transportation efficiency, noting that the new toll bridge supports 20,000 trucks passing through CIC daily and reduces the carbon footprint by more than 100 million pounds annually. Additionally, it diverts truck traffic from local roads, including Route 53 and Route 6, making the commute safer for area residents and workers alike.

As Joliet grows as a logistics hub, experts like Maul and Leahy believe the region is poised for continued industrial development, particularly along the I-80 corridor. The completion of the Houbolt Road project is expected to drive demand for industrial properties, with new leasing and sales opportunities emerging.

“There are thousands of acres just south of the CIC that we believe will become available for industrial development in the next three to five years,” Maul said. “We see the sprawl far beyond Elwood to towns such as Wilmington and Morris, where we are already seeing one million square foot facilities being delivered at a rapid pace.”

Between January 2023 and July 2024, more than 850 qualifying projects were tracked along I-80, with industries ranging from logistics to data centers capitalizing on the region’s strategic location and improved infrastructure. As demand for industrial space increases, the I-80 corridor’s proximity to multi-modes of transportation is becoming a key factor in site selection for businesses.

“We’ve been educating customers for more than 20 years on the advantages of co-locating at the CenterPoint Intermodal Center,” Leahy said, who noted that reduced drayage costs and proximity to Union Pacific and BNSF rail yards provide businesses with a hedge against rising fuel costs while supporting sustainability goals through lower CO2 emissions. “Access to quality skilled labor and proximity to transportation are high priorities for companies as they consider multi-state distribution locations.”

As Illinois continues to attract industrial and logistics companies, the market for industrial properties is becoming increasingly competitive. Maul pointed out that Joliet’s zoning efforts have caused some delays in greenfield site development, but these challenges are expected to clear up once the city’s comprehensive plan is complete.

“The current market for I-1 and I-2 zoned land in Joliet is scarce and demand remains high, causing steady price increases,” Maul said. “We are advising our clients to act fast when opportunities arise and to look farther west along I-80 towards Minooka, where we see tremendous growth for the future.”

Both Maul and Leahy agreed that the long-term benefits of the infrastructure improvements will have a positive impact on local economic development. In addition to improving transportation efficiency and reducing emissions, the expansion of intermodal facilities in Joliet and Elwood is expected to generate more jobs and boost the region’s industrial market.

“It’s an exciting time for the industrial real estate market and its participants,” Maul said. “We see tremendous growth in this area and with new technologies like automation and AI, industrial development is being revolutionized.”

About Hiffman National: 

Based in the Chicago area, with an additional five regional hubs and 30 satellite offices, Hiffman National provides superior property management, project services and accounting services to a diverse portfolio including office, medical office, retail and industrial properties nationally. The firm’s comprehensive property management platform and attentive approach to service contributes to client NOI and has helped the firm to more than double in size in five years. Hiffman National is an award-winning company with more than 250 employees strategically located throughout North America.

About NAI Hiffman:  

NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is and award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.