Logistics Property Company Closes on 74-Acre Joliet Site for 1.28 Million-SF Logistics Development

Logistics Property Company, LLC (LogiPropCo) has closed on a 74-acre development site at 23960 South Houbolt Road in Joliet, Illinois, where it plans a 1,279,700-square-foot logistics building in the I-80 corridor, the firm announced Nov. 2.

Construction is scheduled to begin in spring 2027, with delivery expected in spring 2028. The building is being developed on a speculative basis and is also available as a build-to-suit. Cushman & Wakefield will handle leasing.

Joliet Logistics Development Site Near Major Intermodal Terminals

The site is in close proximity to BNSF's Logistics Park Chicago Intermodal and Union Pacific's Global 4 Intermodal Terminal. Together, the two terminals form the largest inland port in North America, providing one-day drayage access to more than 40% of the U.S. population, according to the company.

Through the Houbolt Road Extension, the property also has direct access to I-55 and I-80, which the company said significantly reduces travel time.

Building Specifications

When complete, 23960 South Houbolt Road will feature:

• 1,279,700 square feet of cross-dock space on a 74-acre site
• 40-foot clear height
• 229 dock doors and four drive-in doors
• 460 automobile parking spaces and 334 trailer parking spaces
• Office space built to suit the tenant

Architects Plus Design is the project architect, and Jacob & Hefner Associates is the civil engineer.

Deal Team and Leasing Representatives

LogiPropCo's Ben Fish, associate market leader, and Vince Pergande, senior vice president of project management, worked with Cushman & Wakefield's Ryan Klink on the transaction. Klink, along with Jason West and Sean Henrick, will serve as the project's leasing representatives.

"23960 S Houbolt Road is the premier location for bulk users given the immediate proximity to the intermodal and the new Houbolt Road Extension," said Fish. "We're excited to continue to grow our Midwest portfolio with this property, our fourth development site in the Chicago market in the last year."

LogiPropCo's Expanding Chicago-Area Portfolio

The Joliet site brings LogiPropCo's Midwest portfolio to 6.7 million square feet owned and under development. It follows the closing of three other development properties: 424 Howard Avenue in Des Plaines, 390 O'Hare Logistics Park in Schaumburg, and 2349 West Lake Street in Addison.

In October 2026, the company also acquired 1401 Normantown Road in Romeoville, a fully leased, 716,318-square-foot industrial building on 34.4 acres with 30-foot clear height, cross-dock loading and substantial auto and trailer parking. The price was approximately $58 million, or roughly $81 per square foot.

LogiPropCo also sold 1237 West Division Street in Chicago, a 571,423-square-foot multistory logistics facility, for $195 million, or approximately $341 per square foot. JLL arranged the sale to a global e-commerce company.

Headquartered in Chicago, Logistics Property Company is a vertically integrated real estate operating company and investment manager focused on acquiring, developing and managing modern logistics properties in key U.S. markets. It owns or has under development approximately 30 million square feet of logistics facilities across 14 markets.

Chicago Industrial Market Context

The project is entering a Chicago industrial market that has shown improving fundamentals. The market recorded 5.05 million square feet of positive absorption in the third quarter of 2026, compared with negative absorption in the year-earlier period. Vacancy stood at 5.4%, while asking rents reached a record $10.29 per square foot, up 4.4% year over year. In the I-80/Joliet corridor, asking rents rose 6.8% year over year in the third quarter.

New supply has moderated. Chicago delivered 3.61 million square feet in the third quarter and 11.33 million square feet over the trailing 12 months, down about 1% from the prior trailing period. Space under construction represented approximately 1.9% of existing inventory.

JLL reported Chicago industrial vacancy of 4.5% in the second quarter of 2026, down from 5.0% a year earlier, with average asking rent of $8.12 per square foot. The firm identified 14.16 million square feet in the development pipeline, 32% of it preleased, and cited a 1.2-million-square-foot lease by KeHE Distributors at Cherry Hill Business Park in Joliet.

Investment activity has also recovered. Chicago industrial sales totaled $7.5 billion over the trailing 12 months, up 66% year over year, with average cap rates of 7.47%, 104 basis points above the fourth-quarter 2021 low, and average pricing of $108 per square foot.

Outlook

With construction slated to start in spring 2027 and delivery targeted for spring 2028, the Joliet building will be marketed to bulk distribution users seeking direct access to intermodal terminals and the I-55 and I-80 highway network.

Sources

• Logistics Property Company: Logistics Property Company Closes on I-80 Corridor Development Site in Joliet, Illinois, near North America's Largest Inland Port