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Investment Sales for Chicago Industrial Outpace Five-Year Average
With a year-to-date total of $4.2 billion, Chicago industrial sales volume through the third quarter has the warehouse & logistics sector outpacing the five-year average by 16.2%, Avison Young reported Wednesday. Over that same five-year period, Q4 accounts for 33.2% of total annual volumes, and a strong finish to the year is expected to boost 2021 volumes further.
Avison Young notes that pricing for Chicago industrial assets has continued to swell, rising more than 58% since 2015, and particularly since the pandemic, as an influx of investors seek exposure to properties that can accommodate the rise of e-commerce distribution.
A major contributing factor to Chicago’s industrial appeal to investors has been its fundamentals throughout 2021. Currently vacancy is at 6.3% for a post-2000 low, says Avison Young. JLL puts the average even lower at 4.4% across the region, with seven submarkets coming in below 3%.
- ◦Sale/Acquisition
