How low can they go? Chicago-area industrial vacancies hit 18-year low

Demand fueled by surging e-commerce is more than keeping up with torrid rate of construction

Chicago /
May.May 14, 2019 09:05 AM
It was the sixth straight quarter in which vacancies fell. (Credit: iStock)

It was the sixth straight quarter in which vacancies fell. (Credit: iStock)

Chicago’s industrial real estate market is showing no signs of slowing down, with demand fueled by growing e-commerce helping developers fill a surge in new construction.

The industrial vacancy rate fell to 6.3 percent in the first quarter, a slight dip from the fourth quarter of 2018 and the lowest level in 18 years, according to a Colliers International report cited by Crain’s.

It was the sixth straight quarter in which vacancies fell. With net absorption at 3.7 million square feet during the quarter, it was the 28th straight quarter in which demand outstripped new supply.

Colliers said developers are expected to deliver some 20 million square feet of industrial space this year, up from 14 million last year but down from a record 24.8 million in 2017, according to Crain’s.

While all manners of online sales are boosting the industrial market, changes in the food distribution industry — helped by Amazon’s entry into the sector through its Whole Foods acquisition —are further fueling a red-hot industrial market. [Crain’s] — John O’Brien


Related Articles

arrow_forward_ios
Missner Group CEO Barry Missner and 1220 West Van Buren Street, a warehouse it had planned to convert into loft-style offices. (Google Maps)
Missner lists West Loop warehouse after scuttling office conversion plan
Missner lists West Loop warehouse after scuttling office conversion plan
Port of Chicago (BartShore/Wikipedia, iStock)
Big development opportunity on tap at Port of Chicago
Big development opportunity on tap at Port of Chicago
Amita CEO Keith Parrott and the Amita Health’s Lisle headquarters at 2601 Navistar Drive in Lisle (Amita, Google Maps)
Amita Health adds to wave of suburban office subleases
Amita Health adds to wave of suburban office subleases
From left: DL3 Realty’s Leon Walker, Discover’s Roger Hochschild, Mayor Lori Lightfoot, and 8560 South Cottage Grove Avenue. (DL3, Discover, Getty, Google Maps)
DL3 Realty signs Discover to big South Side lease
DL3 Realty signs Discover to big South Side lease
Blackstone’s Jonathan Gray and CenterPoint CIO Jim Clewlow with one of the properties, 225 Spring Lake Drive, Itasca (Getty, Linkedin, Google Maps)
Blackstone expands industrial reach with $151M Chicago buy
Blackstone expands industrial reach with $151M Chicago buy
(Arlington Park, Google Maps)
Churchill Downs looks to sell 326-acre Arlington Park race track
Churchill Downs looks to sell 326-acre Arlington Park race track
Chicago this week raised indoor dining to 40% of a venue's capacity. (iStock)
Filling up: Chicago boosts indoor dining capacity
Filling up: Chicago boosts indoor dining capacity
The cavernous complex at 29900 South Graaskamp Boulevard was built in 2015. (Canam Buildings)
Massive Michelin distribution center sells for $130M
Massive Michelin distribution center sells for $130M
arrow_forward_ios

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

Loading...