For all that has been said recently about the uptick in speculative warehouse development across the Chicago region, Marcus & Millichap points out that it’s actually well below average. The firm’s industrial forecast for the second half of 2018 predicts total deliveries of 15.5 million square feet, compared to the three-year average of 19.8 million square feet.
Even if the development numbers are off overall—although they’re up in the I-55 and O’Hare submarkets—then the metrics encouraging new construction continue to rise. “Steadily growing wages and accelerating household formation are enticing developers to expand Chicago’s one-billion-plus-square-foot inventory,” according to Marcus & Millichap.
The new supply isn’t creating a drag on positive movement in two key metrics for industrial owners. Vacancies are expected to decline 50 basis points by the end of 2018 for their lowest level in a decade, while rents are expected to gain 5.2% year over year.
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Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-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 15-20 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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