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Chicago Industrial Maintains Resiliency Through Pandemic
Chicago’s industrial market has remained resilient through the pandemic, Avison Young analysts led by Peter Kroner reported Tuesday. Overall leasing activity has been robust, currently sitting at +51.2% percent of the long-term annual average.
Renewal activity is down 10.7% compared to the two years prior to COVID, as more tenants took advantage of the ability to relocate or expand. Net absorption is keeping pace with new deliveries as construction ramps back up, accounting for 95.4% of newly-built space.
“More speculative construction will provide outlets for tenants and is unlikely to shift leverage towards tenants,” Avison Young reported.
The Chicago industrial market continued to show resilience with vacancies dropping to 6.4%, a 40-basis-point decrease from the close of 2020.
On the capital markets side, investors continue capital deployment on Chicago-area industrial assets at a rate that is 115.7% higher than the prior five-year average, according to Avison Young.
Pictured: Bridge Point I-355 in Lombard, IL.
- ◦Lease
