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January 2024

Hiffman Releases Fourth Quarter 2023 Industrial Market Report

NAI Hiffman is pleased to present the Fourth Quarter 2023 Industrial Market Report, an in-depth look at statistics for the Chicago industrial real estate markets.

Chicago’s Industrial Market Solid but Moderating in 2023

Chicago’s industrial outlook remains bright, but economic pressures, elevated interest rates, and rising construction costs have slowed new groundbreakings and will contribute to a pullback from the historic inventory growth levels of 2022 to 2023.

Fourth Quarter Industrial Market Report

Fourth Quarter Industrial Market Report

  • Chicago’s industrial market maintained significant growth in 2023, though demand has moderated from the historic pace set during 2021 and 2022.
    • The market saw 15.4 million square feet of positive net absorption during 2023, including 1.8 million square feet during the fourth quarter.
  • Vacancy crept up to 5.2% during the fourth quarter, up from 3.9% one year ago as 13.5 million square feet of new deliveries came to market.
    • New supply significantly outpaced net absorption during 2023, leading to some softening in the market. However, construction starts have slowed significantly during the second half of the year, which should tighten availabilities in the second half of 2024.
  • Chicago registered 9.9 million square feet of new leasing activity during the fourth quarter, bringing the annual total to 45.8 million square feet.
    • Following a 2021 that saw a record-high 81.8 million square feet of annual new leasing activity, velocity has cooled over the last several quarters due to economic pressures and slowing demand.
  • Chicago remains uniquely positioned for sustained momentum, as its centralized location and expansive transportation infrastructure continue to draw major industrial players to the region.
Detailed statistics and commentary are available in the Fourth Quarter 2023 Industrial Market Report; click here to access the download.
Detailed quarterly submarket reports will be available in the coming weeks.

Contact Us
For further information regarding the content of this market report, please contact:

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 and advisory firms, providing institutional and private clients exceptional customized solutions for property management, facility management, advisory services, accounting, lease administration, lender services, project management, 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.

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