September 2023
Chicago Industrial Construction Pipeline Report – 2Q 2023
NAI Hiffman is pleased to present the Second Quarter 2023 Chicago Industrial Construction Pipeline Report, an in-depth look at statistics for the current state of industrial development in and around Chicagoland.
Chicago Industrial Construction Powers Through Economic Challenges
Chicago’s industrial developers are still bullish on the market despite a recent cooling of economic growth. Of the 36.1 million square feet under construction, 28.7 million square feet (79.6%) are being built on a speculative basis.
- In the remainder of 2023, an additional 31.3 million square feet of construction is expected to be delivered by year end. This figure exceeds the deliveries in any full year, including 2021 when 28.8 million square feet were delivered over a 12 month period.
- With 11.4 million square feet added and 31.3 million square feet projected to be completed, it is likely that we will see new supply overtake demand by the end of 2023 with an increase in the vacancy rate.
- Standout submarkets
- Most buildings currently under construction
- T-1) 12 buildings – I-90 Northwest
- T-1) 12 buildings – Southeast Wisconsin
- 3) 11 buildings – I-55 Corridor
- Most square footage currently under construction
- 1) 6,085,529 SF – I-80/Joliet Corridor
- 2) 4,634,960 SF – Southeast Wisconsin
- 3) 3,175,000 SF – DeKalb County
- Most buildings currently under construction
Contact Us
Nick Schlanger
Research Director
630-691-0600
nschlanger@hiffman.com
Dan Worden
Research Analyst
630-398-8932
dworden@hiffman.com
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
