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March 2024

REmark – Chicagoland Big Box Leasing Dips in 2023

Chicagoland big box industrial leasing declined to 15.7 M SF in 2023 following massive success in 2021 (33.1 M SF) and 2022 (26.9 M SF)

Evolving Logistics Trends Lead to Decline in Big-Box Leasing

From the onset of the pandemic in 2020 through the end of 2022, the Chicagoland market experienced a significant acceleration in big box industrial leasing. The rapid rise of e-commerce and third-party logistics providers created unabated demand for large modern warehouse, shipping and distribution centers. While we saw several notable big box leases in 2023, overall volume in this sector has moderated significantly – down 40% from 2022. With the complexity of today’s shipping, and a growing need for last-mile, same-day delivery, we are seeing a shift to a more complex network of local distribution centers, with less activity among these large singular hubs located around major population centers.

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 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.

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