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Chicago Industrial Market Stays on Track in Q3
Although economic uncertainty looms amid high inflation and a probable recession, the Chicago industrial market is on track for now, according to Savills’ third-quarter report. Asking rental rates at industrial properties across Chicagoland ticked upward in Q3, increasing 3.4% quarter over quarter to $5.40 per square foot.
Rents have increased over the past 24 months but are well below U.S. coastal markets, where rates were sometimes observed several multiples higher. Conversely, as rents continue climbing, demand softened a bit: quarterly net absorption lowered slightly to 7.2 million square feet, down from 7.9 million square feet in the year-ago period.
While a four-quarter streak of declining vacancy was snapped, the market’s 4.8% vacancy rate remains well below the long-term average. At the same time, the construction pipeline as of Q3 is fuller than it was a year ago: 33 million square feet, up nearly 12 million square feet from Q3 2021.
Pictured: Bridge Point Itasca.
- ◦Lease
- ◦Development
