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Chicago & Midwest  + Industrial  |  October 5, 2018
SIOR confidence in the industrial market dipped for the first time in the society's latest Snapshot Sentiment Report
Paul Bubny
By: Paul Bubny

Industrial Absorption Spikes; Rents Reach New Highs

Chicago’s industrial market came back from a relatively soft second quarter with a Q3 spike in absorption and only 2.2 million square feet of new deliveries, according to NKF. The quarter’s delivery pace compared to five million square feet of new product in Q2.

NKF reported that vacancy slipped below 8% in Q3 for the first time in four quarters. Q3 absorption totaled 4.92 million square feet, the most the market has seen in a single quarter since the end of 2016.

Rental rates continued to rise, reaching a record high of $5.43-per-square-foot. Year-over-year rents increased 4.0%.

Two submarkets positively absorbed more than 800,000 square feet each: Fox Valley/North Kane with 963,000 square feet, and the I-55 Corridor with 806,000 square feet. In particular, the Fox Valley/North Kane submarket saw a 300-basis-point drop in vacancy to 5.9%, its lowest level in several years.


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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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