Caterpillar, Inc. | Hydraulic Parts and Systems Headquarters

Property Description

This one-story manufacturing facility totaling 1,380,070 square feet is leased in its entirety to Caterpillar, Inc. as its Global Hydraulic Parts and Systems Headquarters. Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar’s global headquarters is located in Peoria, Illinois and the company has facilities spanning six continents with over 125,000 employees worldwide.

Business Essential Attributes

This property is the largest (by three times) of the five hydraulics plants around the world that support Caterpillar’s operations. The property was built by Caterpillar in 1953, and Caterpillar has been its sole occupant for 60 years. We believe the property is business essential due to the critical nature of the manufacturing process for truck struts, gear pumps and valves. This property services three other manufacturing and assembly facilities in the area — Aurora, Decatur and Peoria, Illinois. In addition, this property houses a significant engineering team engaged in product design and manufacturing support; no other manufacturing facility provides this level of support.

Additional Property Information

Illustrating its commitment to this property, Caterpillar has invested $85 million in new equipment and $10 million in capital improvements to the property since 2012. Capital improvements included exterior concrete replacement, upgraded T-8 lighting throughout the entire main building, replacement of two roof top chillers, an upgrade of the existing fire alarm system, remodeled and expanded office area, and expansion of the climate controlled assembly area. Further, on-going capital improvements include a new waste water treatment facility currently under construction and a replacement of a substantial portion of the existing roof, both fully funded by Caterpillar.

Caterpillar, Inc. | Hydraulic Parts and Systems Headquarters

Joliet, Illinois


Property Type: Industrial
Square Footage: 1,380,070

Leased: 100%
Lease Expiration: December 15, 2018
Renewal Option(s): Four, 5-year renewal options
Rent Increase(s): 1.40% annual increases
Tenant: Caterpillar, Inc. (S&P: A)