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Vacancy for Chicago Industrial Reaches 19-Year Low
Chicago’s industrial market hit a 19-year vacancy low of 5% in the second quarter as rental rates remained historically strong, Cushman & Wakefield reported. Meanwhile, new starts in development were up substantially over 2018.
“Coming off a huge year in 2018 for new leasing activity and building completions, we were cautiously optimistic about 2019, which has already exceeded expectations at mid-year,” said David Friedland, Chicago industrial group leader for Cushman & Wakefield. “E-commerce, logistics, food and beverage and other industries continue to drive development, sales and leasing activity.”
Looking specifically at investment sales, he added, “Several large transactions are expected to close here over the next two quarters, which will help propel the market into 2020. Despite all the activity, a lot of capital remains on the sidelines—some of it trading in from other sectors—that may lead investors to pursue more opportunistic deals in the coming months.”
Pictured: Interchange 55 in Romeoville, IL
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