CHICAGO- TMG Real Estate Advisors’ Supply Chain Team is pleased to announce the successful completion of a complex industrial real estate transaction on behalf of a full-service logistics client operating in the Chicago metropolitan area. The assignment led by TMG’s Rob Prioletti required not only securing a premier new 210,000 square foot facility but engineering a creative early termination of an existing 84,000 SF lease, doubling the operational capacity at a negligible increase in overall occupancy cost. 

 The client, a multi-faceted logistics operator handling retail distribution, fulfillment, traditional warehousing, and last-mile delivery, had outgrown its 84,000 SF facility near O’Hare International Airport.  While strategically located, the space carried Class A pricing that no longer reflected the client’s evolving operational needs or capacity requirements. TMG was engaged to find a solution that could right-size the operation without dramatically increasing costs.  “We constantly advise our clients that time is their greatest source of leverage. This process started well over a year ago, and that runway allowed us to be intentional, explore every option, and ultimately put ourselves in a position to secure the best possible outcome.” commented Rob Prioletti, Vice President at TMG.

Prioletti and the TMG team identified a 210,000 SF facility in the I-55 corridor in Bolingbrook, IL, a leading Chicago industrial submarket offering significant cost advantages over O’Hare while delivering superior infrastructure for logistics operations.  TMG leveraged the value of the new transaction as negotiating currency with the existing landlord, using the mag

nitude and certainty of the new deal to secure a complete lease termination at the O’Hare facility, rather than a costly buyout. The old lease was torn up entirely. 

 At the new Bolingbrook location, TMG negotiated a significant free rent package specifically structured to offset the period of lease overlap, ensuring the client faced no meaningful double-rent exposure during the transition. In a further win for the client, the vast majority of the free rent was carved into the body of a 62-month term rather than added to the back end.

 A tenant improvement allowance was also secured to support the buildout of the new space, ensuring the client could configure their operations for maximum efficiency from day one. 

Key Outcomes at a Glance 

• 84,000 SF → 210,000 SF: 2.5× increase in space and operational capacity 
• Complete early termination of costly Class A O’Hare lease no buyout penalty 
• All Chicago-area logistics operations consolidated under one roof 
• 53 trailer parking spots, a critical infrastructure upgrade for a high-volume logistics operator 
• Free rent structured to absorb lease overlap,  only 2 of those months added to term end 
• Tenant improvement allowance secured for facility buildout
• Net occupancy cost increase: negligible , despite more than doubling square footage

A significant TMG differentiator is that we do not represent landlords and developers. In fact the TMG team only represents buyers and tenants, providing more transparency with their clients. For more information contact info@tmg-rea.com or visit www.tmg-rea.com