Chicago Industrial Absorption Poised for Big Year-Over-Year Gains
Net absorption for Chicago’s industrial market will surpass 27 million square feet in 2020, a 68% increase over the 16.1 million square feet posted in 2019, according to projections by Cushman & Wakefield. It’s expected to equal or surpass 27 million square feet in 2021 as well.
A similar year-over-year increase is expected for new construction deliveries in 2020: 32.3 million in 2020, a 63% increase over 2019’s total of 19.8 million square feet. As with absorption, Cushman & Wakefield predicts 2021 deliveries will come close to matching this year’s total. Chicago ranks fourth nationally for both demand and new deliveries.
Cushman & Wakefield reports that as an intermodal hub in the middle of the country that is fed by West and East Coast ports, Chicago sees demand for industrial product that’s even higher than in other cities. Therefore, the region will see some of the nation’s strongest rent growth.
Pictured: 2770 Alft Ct. in Elgin, IL.
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