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Chicago Spec Industrial Sees Steadily Rising Demand
The Chicago region’s industrial market has seen 73.6 million square feet of speculative product delivered since 2013, says Colliers International. Despite this massive increase in spec construction, especially since 2016, “demand for modern industrial space has outpaced the rate of development for the past three years,” according to Colliers.
Significant new leasing activity in modern spec product has pushed the Chicago-area vacancy rate in buildings built since 2013 down every quarter since the beginning of 2017, says Colliers. At the end of the first quarter of 2020, these buildings were only 25.9% vacant.
“Another 38 speculative projects totaling 9.3 million square feet are reportedly under construction,” Colliers reports. “Fallout from the ongoing coronavirus pandemic and the economic response may result in these buildings leasing more slowly than over recent years, but demand for modern product is expected to increase again once the situation improves.”
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