Chicago’s industrial construction pipeline shows no signs of slowing

More than 19M sf of industrial development was underway in the first quarter, a 57 percent increase year over year

TRD CHICAGO /
May.May 01, 2019 03:00 PM
An industrial property at 8601 West 47th Street (Credit: iStock)

An industrial property at 8601 West 47th Street (Credit: iStock)

The Chicago-area industrial market’s building craze continues apace, with dropping vacancy and rising rents further fueling an explosion of development.

Developers had 19.3 million square feet of industrial construction underway in the first quarter of 2019, a 57 percent increase year-over-year, according to an Avison Young industrial market report cited by Bisnow. The first quarter of 2019 is the 19th consecutive quarter with at least 35 industrial buildings totaling more than 10 million square feet of construction underway.

Fears of overbuilding began to surface in the fourth quarter of 2018, when a similar amount of industrial space was under construction. Those fears have yet to come true, as vacancy dipped and asking rents improved through the first quarter.

Despite a 13 percent drop in leasing activity from the end of 2018, the industrial market saw vacancy hit 5.9 percent in the first quarter, a 20 basis point drop year over year, according to Bisnow. Average asking rents were just north of $4.90 per square foot, up over 20 cents from the same period last year.

Chicago’s 1.1-billion-square-foot industrial market has been firing on all cylinders for over a year. Its performance has led investors to the market in droves, so much so that the competition for industrial assets has driven down capitalization rates. [Bisnow] Joe Ward 


Related Articles

arrow_forward_ios
Brian Whiting, CEO of Telos Group, and the Old Post Office (Credit: Google Maps)

Lonely at the top: 601W Cos. opens Old Post Office rooftop park in WFH world

Lonely at the top: 601W Cos. opens Old Post Office rooftop park in WFH world
Cars.com CEO Alex Vetter and the building (Credit: Google Maps)

Cars.com wants to shrink its space at West Loop HQ

Cars.com wants to shrink its space at West Loop HQ
Thor Equities’ Joseph Sitt and Palmer House Hilton at 17 East Monroe Street (Google Maps)

Thor’s Palmer House hit with $300M+ foreclosure suit

Thor’s Palmer House hit with $300M+ foreclosure suit
Mark Zuckerberg and Facebook's proposed data center in Dekalb (Mandel Ngan/AFP/Getty)

Facebook is set to build an $800M server farm outside Chicago

Facebook is set to build an $800M server farm outside Chicago
Cook County Assessor Fritz Kaegi and downtown Evanston

Cook County landlords get bad news about 2020 taxes

Cook County landlords get bad news about 2020 taxes
Joe Sitt and 905 W. Fulton Market (Credit: Thor Equities)

Thor Equities’ big bet on Fulton Market is paying off

Thor Equities’ big bet on Fulton Market is paying off
Ald. Walter Burnett (27th)

Alderman Burnett to lift ban on resi development in Fulton Market

Alderman Burnett to lift ban on resi development in Fulton Market
Amazon CEO Jeff Bezos with 4306 120th Ave. in Kenosha and 23700 W. Bluff Road in Channahon (Credit: Getty Images; Google Maps)

Amazon is at it again in Chicago

Amazon is at it again in Chicago
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...