‘Insatiable demand’ in Chicago for industrial space, says report
From the Chicago Business Journal by Ben Miller, published August 24, 2021:
The vacancy rate for industrial space in the Chicago market fell to 5.28% in the second quarter, down from 5.76% in the first quarter.
According to a Chicago Industrial Market Watch report compiled by commercial real estate agency NAI Hiffman of Oakbrook Terrace, there’s “insatiable demand” in the Chicago market for industrial space.
In the latest quarter, the market absorbed nearly 9.7 million square feet of space, which is the highest amount in five years, and nearly 6.5 million square feet of new product was completed in the quarter, according to the report.
“Impressively, the overall vacancy rate decreased despite 11 developments delivering the previously referenced 6.5 million square feet of new product to the market over a 90-day period,” according to the report.
The biggest deal of the latest quarter was the Lion Electric Co. of Montreal announcing in May a 900,000-square-foot facility at 3835 Youngs Road in Joliet, and when it’s completed, it will be the largest all-electric medium- and heavy-duty vehicle plant in the U.S., according to the company.
Also big in the quarter was Amazon.com announcing two leases in Huntley and Waukegan totaling 1.1 million square feet.
“The headline story of the quarter though is the truly eye-popping rate of net absorption. Chicago industrial recorded nearly 9.7 million square feet of move-ins in the second quarter of 2021. This was the strongest single-quarter net absorption figure since the 12.3 million square feet of move-ins recorded in the third quarter of 2016,” according to the report.
The reported added that the Southwest Cook County submarket had the tightest industrial vacancy at mid-year, at 2.97%, and there currently are 68 developments underway in the Chicagoland area totaling 27.3 million square feet.
For access to the full office and industrial reports, contact your NAI Hiffman broker or property manager, or e-mail Research Director Mike Morrone at email@example.com.