Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2219 N Central Avenue in Rockford, Illinois. The subject property consists of approximately 24,480 square feet of warehouse space and is situated on 1.89 acres of land. This single-tenant asset features clear heights ranging from 14 to 22 feet, six grade-level doors, and three overhead cranes distributed throughout the warehouse. Priced well below replacement cost, the property will be available for owner use and/or lease-up beginning in October 2025. Located just eight miles from Greater Rockford Airport, the property benefits from approximately 120 feet of frontage along Central Avenue, which sees daily traffic volumes of 6,600 vehicles. With a 6.0 percent vacancy rate, Winnebago County’s industrial market remains below the 10-year submarket average of 6.8 percent, highlighting continued tenant demand in the area. The subject property sits within the Interstate 39 Corridor/Winnebago County submarket. The submarket is technically positioned within the small Rockford market, which sits adjacent to the larger Chicago market. At 41.6 million square feet, the submarket contains an ample amount of industrial space. In the 12 months running through Q2 2025, net absorption remained well within positive territory at nearly 398,000 square feet. During this time, supply trailed demand with net deliveries adding 240,000 square feet to the inventory. As a result, the vacancy rate bucked the national trend and fell -40 basis points to 6.4 percent. Despite availability tightening, annual rent growth in the submarket continued to decelerate toward a 10-year low of 1.3 percent in Q2, setting the average asking rent at roughly $5.60 per square foot. Given that only 58,000 square feet of industrial space were under construction in the Interstate 39 Corridor/Winnebago County submarket, demand will largely be in the driver’s seat of vacancies and rents for the foreseeable future (CoStar). Known as the Greater Chicagoland area, Chicago-Naperville-Elgin is the third-largest metro in the nation. The metro houses 9.3 million people, including 2.7 million residents within the city of Chicago. The number of corporate headquarters in Chicago is second only to New York City and is home to 30 Fortune 500 companies. Thanks to eight commercial and passenger rail lines, the Port of Chicago, three international airports, and a vast network of freeways, Chicago is a major distribution and logistics hub. The local economy and workforce are highly diverse, supported largely by distribution, finance, manufacturing, and high-tech industries. As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago boasts 100 neighborhoods, 77 community areas, 50 wards, and eight major league sports teams, including two MLB teams. Chicago is a leader in reforming public schools, enhancing public safety and security initiatives, providing affordable housing in attractive and economically sound communities, ensuring accessibility for all, and fostering, social, economic, and environmental sustainability (Chicago.gov).