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Demand Exceeds Supply in Chicago’s Spec Industrial
Chicagoland’s industrial market saw another 18 speculative construction projects totaling 4.2 million square feet delivered during the third quarter, bringing the total spec space delivered since 2013 to 80.4 million square feet among 307 buildings, Colliers International reported.
Despite the increase in deliveries recorded between July and September, the vacancy rate in spec buildings completed since 2013 decreased for the 16th consecutive quarter to 24%, the lowest this rate has been during the current cycle. Colliers says this further demonstrates that demand for modern space has continued to outpace the rate of new development.
Twenty-six new leases totaling 3.9 million square feet were signed during Q3 for spec product, a 50% increase over Q2 leasing volume in this asset class, according to Colliers. The largest new lease recorded involved General Motors leasing the 1,026,000-square-foot spec warehouse at 1023 E. Laraway Rd. in Joliet (pictured) delivered in 2017 by Core5 Industrial Partners.
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