The Chicago industrial market’s hot streak didn’t just continue apace in the second quarter — it posted vacancy rates that mark a 17-year low.
The local industrial market saw a vacancy rate of 6.44 in the second quarter, down from 6.69 at the same time last year and good enough for the lowest rate since the first quarter of 2001, according to a Colliers International report analyzed by Crain’s.
Chicago’s industrial market vacancy rate has steadily declined since a high of 12.24 in 2010, the report said. And increasing demand for warehouse space will continue to keep vacancies low, experts told Crain’s.
A strong economy and the rise of e-commerce has fueled the industrial market throughout the country, but especially in Chicago.
Developers have certainly taken notice of the trend: More than 24 million square feet of new industrial space was delivered last year, and about 14 million square feet will be completed this year, according to Crain’s. Chicago recently topped a list of markets where industrial developers can expect the most return on their investment.
While the Chicago industrial market is extremely hot, the O’Hare submarket is on fire. The vacancy rate near the airport was 3 percent in the second quarter, the lowest rate ever recorded, the report said. [Crain’s] — Joe Ward