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Chicago Industrial Proves Resilient Amid Pandemic
Greater Chicago’s industrial sector exhibited resilience in the wake of the pandemic during the third quarter, Savills reported. “Tenant demand remained relatively strong,” according to Savills. “As one of the world’s largest and most diversified economies, Chicago is able to sustain its industrial market.”
Overall net asking rents in the Chicago market ticked upwards in Q3, to $5.02 per square foot triple net, an increase of 0.2% over Q2. However, asking rents slipped 2.1% year over year. Vacancy rates fell 10 basis points from the previous quarter to 8.8% but were up 30 bps from the same period last year.
The market’s construction pipeline remained robust, with 21 million square feet under construction as Q3 ended. “While economic uncertainty is expected to endure in the near term, occupier demand is anticipated to remain healthy as occupiers in the e-commerce, logistics, and other industries remain active in the market,” Savills reported.
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