July 2023
“Cautious optimism” shared among 100-plus attendees of REjournals’ 20th Annual Industrial Real Estate Summit
On June 20, 100-plus leading real estate professionals gathered at the Hyatt Lodge Oak Brook in Oak Brook, Illinois, to mark REjournals’ 20th Annual Industrial Real Estate Summit.
Among the speakers who shared their expertise and insights on various aspects of the industrial real estate market: Adam Moore of First Industrial Realty Trust; Ben Bartel of National Property Consulting Group, LLC; Chris Moore of FCL Builders; Ed Halaburt of JLL Capital Markets; John Joyce of SVN; Joshua Hearne of Cawley Chicago; Kate Coxworth of JLL; Kelly Disser of NAI Hiffman; Matthew Grusecki of Northern Builders, Inc., Michael Brazeal of CenterPoint Properties; Mike Llewellyn of Alston Construction; and Peter Tsantilis of Liston & Tsantilis, P.C.
REjournals’ Ernest Abood, who hosted the event, expressed the prevailing sentiment as one of “cautious optimism.” Despite a cooling down period, the sector continues to show positive signs, with rising rents being a particularly encouraging trend.
Regarding the state of the market, SVN Managing Director John Joyce said: “After years of unprecedented growth, the Chicagoland industrial market has cooled. Due to high construction deliveries, the current vacancy rate for core markets has increased to 3.4%, up from the start of the year’s historical low mark of 3.2%. Additionally, the Federal Reserve has enacted ten interest rate hikes since March 2023 to try to tame inflation. With an estimated two more expected interest rate hikes, it is unknown if the Fed’s plan is working. The lending environment has impacted the commercial real estate markets, as it is more difficult to fund projects and expansions. As a result, overall transaction volume has decreased. Rental rates continue to grow due to limited new construction for buildings under 200,000 square feet, resulting in double-digit growth for three consecutive years.”
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.
