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Spec Industrial Keeps Coming to Chicago
Chicago’s speculative development boom in the industrial sector shows no signs of abating, according to Colliers International’s latest research. Slightly less than half of the third quarter’s record 8.8 million square feet of deliveries was built on spec, while 67% of the 17.6 million square feet currently under construction is spec product.
Colliers says that since the current development cycle began in 2013, 242 spec projects totaling 65 million square feet have been delivered, Meanwhile, 211 build-to-suit projects totaling 52 million square feet have been delivered in the same time frame.
Despite significant new spec supply being delivered every quarter, vacancies for spec buildings built since 2013 have continued declining. Q3’s vacancy rate of 29.8% for spec product was the lowest of the current cycle.
Moreover, this figure has decreased each of the past 10 quarters, indicating that demand for new spec space is outpacing new supply, according to Colliers.
Pictured: Centerpoint’s 3901 Brandon in Joliet, IL, Q3’s largest spec delivery.
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