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Big Box Industrial Vacancy Reaches Record Low in Chicago Market
Chicago’s big box industrial vacancy rate continued to drop precipitously during the first quarter of 2022, declining by more than a full percentage point to 2.61%, a record low by a wide margin. A year ago, big box product in the market averaged 8.15%, reported Colliers’ Craig Hurvitz.
Net absorption in the market’s biggest and most modern buildings has been “astounding” since Q4 2020, wrote Hurvitz, VP of market research. It has totaled at least five million square feet each quarter for a grand total of 45 million square feet over the six-quarter period. Net absorption totaled 6.7 million square feet during the first quarter of 2022 alone.
Unprecedented new leasing activity and the delivery of large build-to-suit projects have figured in the record demand. “With such a tight market, new development will strongly influence net absorption over the coming quarters,” Hurvitz wrote.
- ◦Lease
- ◦Development
