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Industrial Vacancies Drop, While Asking Rents Hit New High
The Chicago region’s industrial vacancy rate declined 60 basis points to 7.1% in the first quarter, says NKF. Limited new deliveries, strong absorption and high leasing activity all were factors.
If any single transaction could be singled out for the high absorption rate in Q1, NKF would cite 3PL provider NFI’s acquisition of 100 E. Millside Rd. (pictured) in Joliet Logistics Park. The 992,640-square-foot facility, a speculative development by Hillwood, had been vacant since its completion in 2017.
“This removes a large block of vacancy from the I-55 submarket, which has been struggling with slowing demand and multiple large deliveries completing without tenants,” according to NKF.
Although 2.4 million square feet of new construction was delivered during Q1, demand more than kept pace with deliveries, as 3.5 million square feet of space was absorbed during the quarter. Asking rents increased to a new high of $5.64 per square foot.
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