Bell Works in Hoffman Estates adds three more tenants, including largest to date
Three new tenants are coming to Bell Works Chicagoland in Hoffman Estates, including its largest to date.
This brings the initial eastern phase of the redevelopment of the former AT&T headquarters to 80% occupancy.
That rate for the in-demand, newly renovated office space significantly outperforms the overall 50.6% occupancy rate with which the Chicago region’s office market ended the first quarter of 2024, according to representatives of New Jersey-based developer Inspired by Somerset Development.
The three new tenants add another 100,000 square feet of occupied office and warehouse space to the property’s potential 1.2 million-square-foot build-out.
The largest space will belong to Convergint, a global systems integrator currently located in neighboring Schaumburg that has leased 50,000 square feet of office space and 14,000 square feet of warehouse space at Bell Works.
First Service Residential, a property management company located in Elk Grove Village, has leased 20,000 square feet of office space as well as temporary space for 80 people as of this week.
Identiti, a Schaumburg-based national provider of signs, graphics and maintenance services, will relocate its headquarters to a 16,000-square-foot space at Bell Works. The move brings in 90 of the company’s more than 2,800 nationwide employees in November.
Hoffman Estates Economic Development Director Kevin Kramer said Bell Works well represents the current demand for quality in the office market.
“Bell Works is one of the best out there right now,” he added. “We’re thrilled to see some of these companies growing.”
Kramer said the redevelopment is triggering additional growth in the area.
While more commercial development is planned on the western portion of the sprawling building, residential development outside the east side is on the immediate horizon.
“We’re getting ready to break ground within the next few weeks,” said Inspired by Somerset Development CEO Ralph Zucker. “There’s a lack of quality new homes in our market. You’ll have that combination of nature and the urban vibe that we’re creating. The best of both worlds.”
Last year, Hoffman Estates approved 164 high-end townhouses and gave preliminary approval to a concept plan for about 300 apartments on a nearly 20-acre portion of the 152-acre Bell Works property.
Prices for the townhouses are expected in the mid-$400,000s, each with three bedrooms and an option for a fourth. Each unit would have three floors, with a two-car garage on the ground floor and the living areas above.
After that will come the start of phase two of the commercial redevelopment of the property.
“We actually have to start planning that move because we’re almost out space on the east side,” Zucker said.
Before leaping into new startup construction costs on the west side, the firm will ensure it has enough leasing interest in advance to justify it.
But Zucker added there will be many more cost efficiencies in renovating the second half of the building than there were starting the project from scratch.