Big Box Leasing Volume Reaches 2-Year High
New leases totaled 4.1 million square feet among 19 new leases signed in Chicago-area big box industrial properties during the second quarter of 2018, Colliers International’s Craig Hurvitz reported. That’s the greatest quarterly new leasing volume since 2016.
This activity pushed the big box vacancy rate down for the second consecutive quarter to 9.04%. This rate is 60 basis points below the level seen at the end of 2017, but well above the 7.71% recorded a year ago, as well as the market’s overall current rate of 6.44%.
Eleven big box developments, totaling 4.8 million square feet, were started between April and June, while only seven projects totaling 3.3 million square feet were delivered. The total under construction has increased to 19 projects, totaling 7.3 million square feet, the most in three quarters. More than half are infill projects, the current cycle’s high-water mark for infill big box development.
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