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Chicago & Midwest  + Greater Chicagoland  + Industrial  | 
Three Warehouses to be Developed in St. Louis Under Qualified Opportunity Zone

Chicago Industrial’s Robust Pipeline May Pressure Rent Growth

All of the metrics for Chicago’s industrial have been trending upward, including net absorption and asking rents. However, inventory, the construction pipeline and the vacancy rate are also up year-over-year, says Savills, with potential long-term implications.

Anders Klein, regional research director for Savills, says in the firm’s fourth-quarter report that the Chicago market’s construction pipeline remained robust, with nearly 20 million square feet under construction at the close of 2020. “This added supply may eventually exert downward pressure on rents,” writes Klein.

“While there continues to be uncertainty with the pandemic and the resulting economy, there are signs of gradual reopening of facilities in the Chicago metro area,” said senior managing director Bruce McConnell. “As tenants are able to begin projecting future needs beyond 2021, there will be opportunities for expansion and / or rightsizing due to the significant amount of new construction coming on line this year.”

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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).

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