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Chicago & Midwest  + Industrial  |  March 13, 2019
Paul Bubny
By: Paul Bubny

Chicago’s Data Center Market Faces “Delta” in Competitiveness

Vacancies in Chicago’s data center market declined by 50 basis points in the second half of 2018 to 10.7%, CBRE reported. However, with new product being delivered and leasing velocity slowing down in 2018, vacancy increased 180 bps over year-ago numbers.

Conversely, the influx of new product may be just what the market needs. Although Chicago is the nation’s fourth largest data center market with 243 megawatts of capacity, supply constraints have hindered big users from growing their footprints in the region, according to CBRE’s latest national report on the sector.

“This new product will help meet the needs of large users that have been unable to expand in the market,” said practice leader Todd Bateman. “However, leasing velocity has been affected by meaningful competition from other markets to lure these users. Chicago will become more competitive in time, but currently a delta exists.”

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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 16-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 7-10 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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