Breaking News Bar
updated: 6/12/2013 10:12 AM

Retail going fast, office slow, on downtown Barrington project

hello
Success - Article sent! close
  • Barrington officials this week heard a progress report on the tenant leasing of the pending retail-office redevelopment on the southwest corner of Hough and Main streets.

      Barrington officials this week heard a progress report on the tenant leasing of the pending retail-office redevelopment on the southwest corner of Hough and Main streets.
    courtesy of The village of Barrington

 
 

Retail tenants are lining up faster than expected for Barrington's downtown redevelopment project on the southwest corner of Hough and Main streets, but a large office tenant believed to be already committed has dropped out unexpectedly.

That was the news this week out of a progress report the Evanston-based developers behind the retail-office project delivered to Barrington officials.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

While it's still possible construction could begin on the buildings this year, that seems less likely today than when the village board gave final approval in December, said Bruce Reid, president and chief operating officer of development partner Arthur Hill & Co.

At this point, leases for about 56 percent of the development's retail space have either been signed or are under negotiation.

"That's a happy circumstance, but it's a double-edged sword," Reid said. "We didn't want to get too far along with the retail."

The reason for that is that leases are offered at a lower rate for those who commit before construction. Under the development agreement with the village, construction cannot start until there are signed leases for at least 50 percent of both the office and retail space.

Plans call for an L-shaped building with an 18,000-square-foot ground floor at the corner of Hough and Main streets with a one-story, 6,000-square-foot building just west of it. The larger building would be either two or three stories tall, with the upper floors reserved for office space.

Reid said his company had a fully negotiated letter of intent with a high-end office tenant, but that deal fell through. The developer now is in talks with another prospective office tenant. As a result of the state of negotiations and the amount of competition that exists, the price of the office space has been reduced, Reid said.

The redevelopment project played a prominent role in this year's race for village president, specifically because of the upper-floor office space.

Write-in candidate Mike Kozel, who ultimately lost to incumbent Karen Darch, argued that the region's office space market already is oversaturated and that the upper floors ought to be reserved for residential apartments instead.

Reid at the time said that apartments could work, but his company was confident the right kind of office tenant could provide a better return on investment.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.