First Quarter 2014 Market Peek
We are pleased to present our First Quarter 2014 Market Peek, a sneak peek at the market statistics for the Chicago Metropolitan office and industrial real estate markets.
10 Million SF Under Construction in Improving Industrial Market
The industrial vacancy rate decreased by 10 basis points during the first quarter to 8.2%. a rate similar to what was witnessed during the highly active market of 2007, and 80 basis points below where it was a year ago.
Nearly 1.4 million SF of vacant space was absorbed during the first quarter, indicating strong demand, but less than the 4.4 million SF absorbed last quarter likely due to the harsh winter and first quarter being a historically slower period.
More than 10 million SF of new industrial construction projects are currently underway, and an additional 12 million SF will soon break ground or are in the planning stages. Of that activity, 41% is speculative development, another 54% is build-to-suit activity, and 5% are building additions.
Suburban Office Vacancy Drops to 19.7%, Downtown Unchanged
News was positive in the suburban office market during the first quarter, as leasing activity resulted in the absorption of 272,607 SF, pushing the vacancy rate down 21 basis points to 19.67%. Since the market turned around in late-2010, this rate has dropped 4.3% due to nearly 5 million SF of space being absorbed.
All five suburban office markets witnessed positive absorption during the first quarter. The Northwest Suburban office market absorbed the most vacant space, about 136,000 SF.
For the first period in more than three-and-a-half years, net absorption in the downtown office market turned negative due to several new vacancies being introduced and buildings being converted. Absorption totaled negative 115,084 SF for the quarter, however the vacancy rate remained flat at 12.5%.
For further information regarding the content of this market peek, please contact:
Craig Hurvitz | Director of Statistics and Market Information
630 693 0645
If you are interested in attending a custom market overview presentation, please contact:
John Picchiotti | Chief Operating Officer, Brokerage
630 691 0608
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