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Chicago Industrial’s Future Looks Bright After Record-Setting 2020
Neither a pandemic, an economic recession, nor political unrest could stop Chicago’s industrial market during 2020, writes Craig Hurvitz, senior director of research at Colliers International. A record 48.6 million square feet of new leases were signed during the year, surpassing the record set the year prior.
“29.6 million square feet is under construction, including 12 buildings greater than one million square feet – both new records,” Hurvitz writes.
Although that new construction is partly to blame for an increase in vacancies during 2020, the year finished only 48 basis points higher than year-end 2019. Moreover, at 6.73% it’s well below the peak of 12.31% recorded in 2010.
The party isn’t over yet for the region’s industrial market. In Colliers’ fourth-quarter 2020 report on Chicago industrial, Hurvitz writes that additional significant demand and leasing activity is anticipated for 2021. He predicts “strong net absorption” over the coming year.
Pictured: Bridge Developmnt’s Bridge Point North in Waukegan, IL.
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