Most landlords build to accommodate growing tenants, but an owner in northwest suburban Mount Prospect is trying demolition instead.
Principal Real Estate Investors LLC is razing more than one-third of the 190,038-square-foot building at 800 Biermann Court to create more parking for tenant CVS Caremark Corp. Though there's no shortage of office space in the suburbs, parking is in short supply as tenants cram more employees into the same space.
Woonsocket, R.I.-based CVS Caremark is increasing its office space in the building by about 20 percent, to 123,115 square feet, as part of a long-term lease renewal, according to New York-based brokerage Studley Inc., which represented the drugstore chain and drug benefits manager.
Under the deal, Principal agreed to demolish the remaining 67,038 square feet of unused warehouse space in the single-story building to boost the number of parking spaces to 854, from 500, according to Studley.
The landlord, the real estate arm of Des Moines, Iowa-based investment firm Principal Financial Group, converted most of the former warehouse to office space about two years ago. That's when CVS Caremark shifted a prescription drug distribution center to another Mount Prospect building and moved office workers to the Biermann Court structure in Kensington Business Center, said John Conerty, a senior managing director at Studley.
Another reason to tear a building down: to put up a parking lot
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