Schaumburg sees former Motorola site as an 'exciting mixed-use development'
The village of Schaumburg is dealing with the loss of a major tenant, which caused a reported jump in its industrial vacancy rate, by making the space available for "exciting mixed-use development," Schaumburg Economic Development Manager Matt Frank said during a recent interview.
"The increase in the industrial vacancy rate is due to Motorola vacating the 1 million-plus square foot facility on their former campus," Frank told DuPage Policy Journal. "This building will be demolished to make way for an exciting mixed-use development."
Motorola Solution's pull-out also has prompted the village to consider alternative tenants in its office space, where the vacancy rate also shot up last year, Frank said. "Motorola also vacated one of their larger office facilities which is being marketed for redevelopment," he said.
Schaumburg, a leading office and industrial center among Chicago's suburbs, experienced a spike in industrial and office vacancy rates last year, compared with 2016, according to the village's Community Development Department Monthly Report for December. Schaumburg's industrial vacancy rate rose from 6 percent in 2016 to 15 percent in 2017 while the village's office vacancy rate rose from 19 percent to 24 percent, according to the report.
Motorola Solutions, which was headquartered in Schaumburg for about 50 years, announced in the fall of 2015 its plans to move its global headquarters to Chicago. After that move was accomplished, Schaumburg Village Board members were updated during a meeting in November about proposed redevelopment of the now vacated spaces.
December’s monthly report also identified three key activities for Schaumburg's industrial and office space. Under the Easy Street Agreement, funding has been approved to rehabilite the former East Street Pub at 17 S. Roselle Road. Under Motorwerks, redevelopment of aformer Kia dealership on Golf Road has been approved for a new 43,000 square foot facility in what will become Schaumburg's 22nd auto dealership. Redevelopment and expansion of the Hyatt Regency, also on Golf Road, has been approved.
"The village of Schaumburg is in the process of finalizing a master plan for the Motorola campus," Frank said.
Area property tax rates, among the highest in the nation, are not the highest priority for would-be tenants, Frank said. "Property taxes may play a role but businesses locate in Schaumburg because of the corporate environment, location, amenities and workforce," he said.
Recommendations under the village comprehensive plan include preparation of concept plans. "The master plan establishes the village's long-term vision for the 90 North District West and provides the background on how the regulatory framework was developed," the analysis portion of the master plan said. "The Illustrative Master Plan shows a potential development scenario at full build-out as envisioned by the village. While actual build-out of development parcels may vary, the Illustrative Master Plan provides a clear and consistent framework for the 90 North District West Zoning Code and Design Guidelines."
Meanwhile, marketing efforts for the vacant industrial and office space are moving ahead, Frank said. "The village of Schaumburg is actively marketing vacant spaces with the brokerage community to attract new investment," he said.
"Paylocity, Charles Industries, Andigo, Lavelle Law, PC Connection, Sodick and Laser Center are a few of the companies who relocated to Schaumburg in 2017, bringing significant jobs and investment," he said. "The North Schaumburg TIF District was created in 2014 to pay for the new I-90 Tollway Ramps at Meacham and Roselle roads, integrate bus, rapid transit and local transit services to promote a convenient pedestrian circulation, encourage redevelopment of the underutilized properties in the area, and improve utilities and infrastructure within the project area."