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Chicago Spec Industrial Demand Continues to Outpace New Supply
Concerns that Chicago-area industrial developers may be getting in over their skis with prolific speculative construction appear to be unfounded, judging by newly issued Colliers research. Despite the delivery of 39 spec projects totaling 12.8 million square feet during 2021, the vacancy rate among the 355 speculative buildings totaling 94.9 million square feet delivered since 2013 decreased by 8.5% during the year to an all-time low of 10.7%.
Although 54 speculative construction projects totaling a record 18.8 million square feet were under construction at the end of 2021, demand continues to outpace the rate of construction, Colliers says. This suggests that much of the new spec development will lease quickly and there remain no signs of overbuilding.
Build-to-suit set records during 2021 as well, with 23 buildings totaling 18.7 million square feet delivered during the year. This included eight buildings greater than one million square feet, for another record.
- ◦Development
