Chicago & Midwest + Greater Chicagoland + Industrial | January 30, 2023

Chicago Industrial Rebounds in Q4 from Slight Pause

Following a slight dip in demand during the third quarter of 2022, Chicago industrial picked right back up during Q4, with net absorption totaling 9.9 million square feet between October and December, Colliers reported. This brought the total for 2022 to 40.6 million square feet, the second greatest annual net absorption total in the market’s history.

Despite an increase in speculative construction deliveries, the industrial vacancy rate decreased during all four quarters of 2022, dropping nearly a full percentage point from 5.44% at the end of 2021 to an all-time low of 4.5% by the end of December. While this rate slowed during the last two quarters of the year, this was largely a function of new vacant product being delivered rather than a drop in demand.

Half of the 22 tracked submarkets reported a vacancy rate below the market average and seven boasted a rate below 3%, said Colliers.

Connect

Inside The Story

Colliers Chicago

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

Order Reprints