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Chicagoland Big-Box Vacancies Tick Upward Thanks to New Deliveries
Net absorption for the Chicago region’s big-box industrial properties totaled 3.1 million square feet in the second quarter, bringing the midyear tally to an impressive 6.9 million square feet, according to Colliers International’s Craig Hurvitz. However, the addition of seven speculative projects totaling 3.4 million square feet increased vacancies nine basis points to 8.62%.
“These new buildings were delivered 78% vacant, adding 2.6 million square feet of new vacant space to the big box market,” according to Hurvitz. The region’s largest current availability is the Opus Group’s 1.2-million-square-foot Rock Creek Logistics Center in Joliet, IL.
Hurvitz noted that big-box development continues to expand, with 27 buildings totaling 13.8 million square feet now under construction. Eleven of these projects are greater than 500,000 square feet, indicating that large-footprint users are returning to the Chicago market. Eight big-box projects totaling 3.6 million square feet were completed during Q2, seven on spec.
Pictured: Rock Creek Logistics Center
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