Buckle Up—Chicago Commercial Real Estate is on a Roll

By Adam Marshall, President, SIOR Chicago Chapter, and Senior Managing Director, Newmark

Chicago is leading major U.S. cities in pandemic recovery measures, and that’s good news for commercial real estate, according to the October luncheon panel discussion of the Chicago chapter of the Society of Industrial and Office Realtors (SIOR), the leading international professional commercial and industrial real estate association.

The discussion was kicked off by Lisa Dziekan, VP of business development and global strategy, World Business Chicago, who noted that Chicago has 7.1% unemployment and leads the country in attracting corporate relocations and expansions. Also noteworthy, Chicago minted 12 “unicorn” companies in 2021—more than any other U.S. city.

Sterling Bay’s Dr. Suzet McKinney, principal and director of life sciences, highlighted Chicago’s life sciences potential as an alternative to places like Boston, where laboratory rents can exceed $100 per square foot versus $60-$65 per square foot in Chicago. Sterling Bay’s 320,000-square-foot ALLY life sciences building, coming online in Q3 2023, has already attracted a West Coast tenant.

Also important is the booming industrial real estate market. New leases totaled a record-breaking 48.6 million square feet in 2020—a 28% increase over 2019 volume. IDI Logistics’ Scott Gibbel, VP, shared IDI’s plans to add more than 631,00 square feet of industrial space to its 30 million-square-foot Chicago portfolio.

Panelists portrayed a metropolitan area rapidly recovering, with tenants rapidly returning to offices in the West Loop/Fulton Market. Meanwhile, the industrial market will be frenzied for the foreseeable future. As Gibbel advised, commercial real estate professionals better “Buckle up!” for an exciting road ahead.

Pictured, from left: Sam Badger, SIOR Chicago Vice President, Scott Gibbel, IDI Logistics, Lisa Dziekan, World Business Chicago, Dr. Suzet McKinney, Sterling Bay, and Adam Marshall, SIOR Chicago President, discussed the current business climate, office, and industrial trends, and recent redevelopment projects shaping the future of Chicago at SIOR Chicago’s recent luncheon event at Gibsons in Rosemont on October 28.