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Chicago Industrial Vacancy Ticks Downward Again
Industrial vacancies in Greater Chicago shaved another 30 basis points to end the first quarter at 8.2%, NKF reported. That being the case, the quarter’s net absorption was the smallest for Q1 since 2013, and NKF noted that average rents ticked downward slightly while remaining near record highs.
The current year will see about 8.8 million square feet of speculative industrial product delivered. That volume of new and as-yet unclaimed construction is likely to result in a vacancy increase.
However, NKF said that although there’s evidence that the market has slowed, “tenants and investors should remain confident that this is a plateau and not a downturn of the market.” Industrial remains Chicago’s strongest asset class, “driven by e-commerce and food distributors that want to get their products on the road as fast as possible.”
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