Near-Term Outlook is Mixed for Chicago Industrial
Chicago’s industrial market set another record during the first quarter of 2020, Colliers International reported. The market saw 14.6 million square feet of new leasing volume, with more than half that total coming from seven leases greater than 500,000 square feet. In comparison, 2019 saw just 10 leases of this size across the region.
However, the Colliers report from Craig Hurvitz asks the question “what’s next?” in view of COVID-19. For industrial, the answer is mixed.
“While commercial real estate is undoubtedly feeling a significant impact due to the coronavirus pandemic and the resulting economic downturn, several industrial occupier types including e-commerce, food and beverage users, packaging companies and healthcare-related industries aren’t as negatively impacted by the stay-at-home directives and supply chain adjustments of the current situation,” Hurvitz writes.
Conversely, Hurvitz says developments already in progress will continue as planned, “but many planned speculative buildings will be put on hold.”
Pictured: Interchange 55 in Romeoville, IL.
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