February 2024
Hiffman Releases Year End Construction Pipeline Report
NAI Hiffman is pleased to present the Year End 2023 Construction Pipeline Report for industrial development in the Chicagoland market.
Record Amount of Deliveries During 2023
A total of 115 buildings were completed during 2023 accounting for a record-breaking 38.9 million square feet. A figure that far outshines the previous record set in 2021, when 28.8 million square feet were delivered by developers.
Even on a quarterly basis new records were set in 2023. During the fourth quarter alone, 32 buildings were completed, bringing 13.5 million square feet to Chicagoland’s industrial inventory. The previous quarterly record was recently set in the third quarter of 2023 with 12.4 million square feet being delivered. 25.9 million square feet were brought to completion in the second half of the year alone, mainly due to supply constraints finally easing during the summer of the year.
Construction starts, however, were down from their height of 27 in the fourth quarter of 2022 to a total of 11 in the fourth quarter of 2023. A total of 16.5 million square feet were under construction at the end of the year with 12.7 million square feet being developed speculatively and a further 3.8 million square feet as build-to-suit. Respectively speculative projects represent 77% and build-to-suit projects 23% of all square-footage being constructed by year’s end.
A further 14.8 million square feet are projected to be completed throughout 2024 with 11.4 million square feet projected to be delivered vacant. A further 23.3 million square feet remained vacant at the end of 2023. For buildings completed during 2022 and 2023, average leasing volume measured 3.3 million square feet per quarter. Much of this space can be expected to remain on the market until early 2025 given historical tenant demand for modern space.
More information including complete submarket reports and notable projects under construction are available in the full Year End 2023 Construction Pipeline Report; click here to access the download.
Contact Us
Dan Worden
Research Analyst
630-398-8932
dworden@hiffman.com
Nick Schlanger
Director of Research Services
630-691-0600
nschlanger@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.
