REmark: Chicagoland Development & Developers
Supply in the Chicago market has increased over the past five years to match growing demand. More than 82.96 M SF of industrial speculative development broke ground in Chicago between 2015 and the end of 2020’s third quarter. The top 20 developers alone are responsible for 74.4% of that total – more than 61.7 M SF.
While the overall industrial pipeline has increased 48.7% in the last year to nearly 25.5 M SF, speculative developments have actually declined 14.0% year-over-year to the 10.4 M SF currently underway.
As developers continue to manage new inventory to align with current deal velocity, future spec deliveries may continue to taper off. For the time being though, a robust pipeline heading into 2021 aligns with continued strength in fundamentals. #CRE #REmark #Chicago #industrial #NAIHiffman