November 2023
Hiffman Releases Third Quarter Construction Pipeline Report
NAI Hiffman is pleased to present the Third Quarter 2023 Construction Pipeline Report for industrial development in the Chicagoland market.
Record Amount of Deliveries During Third Quarter
Chicago’s industrial market saw a record amount of new construction deliver during the third quarter, with 13.1 million square feet coming to completion, bringing the year-to-date total to 26.1 million square feet.
As supply chains began to ease, many developers were able to bring their much-anticipated construction projects to completion, registering an astonishing total of 48 buildings having been delivered.
- 16.1 million square feet of new industrial product are projected to deliver during the fourth quarter of 2023, which would bring the annual total to 42 million square feet.
- The Supply side remains active with 26.1 million square feet currently under construction.
- Over the past five years, speculative space has dominated the total square footage being brought to Chicagoland’s inventory. Speculative development represents the majority of space under construction, at 76.6%, affirming owners and developers belief in their ability to lease this new product.
- Due to the high amount of completed industrial construction projects, net absorption is now being surpassed by new supply. However, this does not mean there has been a slowdown in demand, rather it has been the result of a greater number of construction projects. With new leasing activity hitting a total of 32.3 million square feet through the third quarter of 2023, fears of supply outpacing demand over the long-term are likely unfounded.
- NAI Hiffman is either currently marketing or has brokered deals in a total of 3.7 million square feet of all industrial product that is currently under construction, accounting for 14.1% of the 26.1 million square feet of pending construction completions. 11% of all of ongoing construction projects listed by NAI Hiffman has been preleased.
More information including complete submarket reports and notable projects under construction are available in the full Third Quarter 2023 Construction Pipeline Report; click here to access the download.
Contact Us
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 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.
