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Chicago & Midwest  + Greater Chicagoland  + Industrial  | 

Chicago Industrial Turns in “Banner Performance” for 2022

Chicago-area industrial real estate displayed “banner performance” in 2022, with absorption of 38.3 million square feet leading the nation, NAI Hiffman reports. Vacancy tightened to 4.1% overall in the fourth quarter despite 26.6 million square feet of new deliveries last year. 

That being said, NAI Hiffman also notes that Q4 leasing volume was down 21% from Q3 and 60% year-over-year. “Following a historic 2021 that saw a record high 82.3 million square feet of new leasing activity, velocity has moderated, with annual leasing activity measuring 57.6 million square feet through the end of 2022,” the firm reports. “While this remains an indicator to watch, leasing is likely to accelerate during the first half of 2023 as a significant amount of new spec development hits the market.” 

Longer-term, NAI Hiffman says, “Chicago remains uniquely positioned for expansive growth, as its centralized location and expansive transportation infrastructure continue to draw major industrial players to the region.” 

Pictured: Bridge Industrial’s Bridge Point I-355 in Lombard, IL.


Inside The Story

NAI Hiffman

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 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).