October 2023
Hiffman Releases Third Quarter 2023 Industrial Market Report
NAI Hiffman is pleased to present the Third Quarter 2023 Industrial Market Report, an in-depth look at statistics for the Chicago industrial real estate markets.
Chicago Industrial Fundamentals Remain Strong Despite Moderation
Chicago’s industrial market remains bright, but economic pressures, elevated interest rates, and rising construction costs have slowed new groundbreakings and contributed to a pullback from the historic absorption levels of 2021 and 2022.
- Chicago recorded 6.4 million square feet of positive net absorption during the third quarter, bringing the year-to-date total to 15.1 million square feet.
- Overall vacancy measured 4.6% during the third quarter, the seventh consecutive quarter of sub – 5.0% overall vacancy.
- Demand for new, high-quality warehousing and distribution space continues to drive a robust pipeline, with 26.1 million square feet currently under construction.
- 26.1 MSF of new product has delivered through Q3, with an additional 16.1 million square feet projected to be delivered during the fourth quarter – which would put Chicago on track for a record year.
Contact Us
Nick Schlanger
Research Director
630-691-0600
nschlanger@hiffman.com
Dan Worden
Research Analyst
630-691-0600
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.
