
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.