September 2023
Texas data center firm closes on deal for Sears campus in Hoffman Estates
Jack Reardon, senior vice president of Oakbrook Terrace-based commercial real estate firm NAI Hiffman, said the post-pandemic state of the office-space industry led him to regard the property’s sale as the biggest challenge any broker could face.
The practice of simply demolishing unwanted office buildings wasn’t as common when the site went on the market as it’s become 21 months later, he added.
“Once you realize you’re not going to backfill 2.4 million square feet of office space, then the decision-making gets a lot easier,” said Reardon, whose company wasn’t involved in the marketing of the site.
Data centers are a relatively new factor in commercial real estate, Reardon said, noting that they fall into neither the office or industrial category. The lack of loading docks and truck traffic are a certain contrast from the latter.
“You can’t really protest a data center,” he said. “It’s just a big, giant building that doesn’t bother anyone.”
Such a use would seem to be ideal for the somewhat remote Sears campus that never boasted high visibility among its attributes, Reardon noted.
One way in which data centers stand out is their unusually high power consumption. Reardon said Compass likely confirmed the availability of enough power as part of its due diligence process ahead of the closing.
“Finding a solution for the whole site is a job well done by everybody,” he added. “Once you get the power over there, this becomes the easiest ‘yes’ of all time.”
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 an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
