REmark – Record Construction During 2023

As the Pandemic-related supply chain bottlenecks finally eased during the third quarter of 2023, developers were able to deliver the long-awaited industrial product demanded by tenants. A quarterly record of 13.1 million square feet were delivered, which surpassed the previous quarterly record of 9.7 million square feet set in the second quarter of 2022. An additional 16.1 million square feet are projected to be completed by the end of 2023, which would bring the 2023 newly constructed square-footage to 42.2 million square feet by year’s end.

8.3 million square feet of industrial deliveries are projected for 2024, a slower year for development due to a slowdown in construction starts. This, coupled with 32.3 million square feet of new leasing activity through third quarter, should cause vacancy to tighten during the first half of 2024 as tenants begin to occupy new space.

For more information, 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 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.