Chicago Industrial Turns in ‘Banner Performance’ for 2022
Chicago-area industrial real estate displayed “banner performance” in 2022, with absorption of 38.3 million square feet leading the nation, NAI Hiffman reports. Vacancy tightened to 4.1% overall in the fourth quarter despite 26.6 million square feet of new deliveries last year.
That being said, NAI Hiffman also notes that Q4 leasing volume was down 21% from Q3 and 60% year-over-year. “Following a historic 2021 that saw a record high 82.3 million square feet of new leasing activity, velocity has moderated, with annual leasing activity measuring 57.6 million square feet through the end of 2022,” the firm reports. “While this remains an indicator to watch, leasing is likely to accelerate during the first half of 2023 as a significant amount of new spec development hits the market.”
Longer-term, NAI Hiffman says, “Chicago remains uniquely positioned for expansive growth, as its centralized location and expansive transportation infrastructure continue to draw major industrial players to the region.”
NAI Hiffman’s full 2022 year-end Chicago industrial report is available for download by clicking here.
About Hiffman National:
Based in the Chicago area, with an additional five regional hubs and 30 satellite offices, Hiffman National provides superior property management, project services and accounting services to a diverse portfolio including office, medical office, retail and industrial properties nationally. The firm’s comprehensive property management platform and attentive approach to service contributes to client NOI and has helped the firm to more than double in size in five years. Hiffman National is an award-winning company with more than 250 employees strategically located throughout North America.
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 and award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.