Chicago real estate is all about warehouses these days

Industrial market stayed hot in Q2 as leases boomed, vacancy rate fell

Chicago /
Aug.August 11, 2021 11:00 AM
 
3835 Youngs Road and a rendering of the Abt Electronics warehouse in Glenview (Meridian Design Build via Vimeo, Abt)

3835 Youngs Road and a rendering of the Abt Electronics warehouse in Glenview (Meridian Design Build via Vimeo, Abt)

Chicago industrial tenants signed 173 leases in the second quarter for 15.4 million square feet of space.

The total was a quarterly record, continuing the industrial market’s strong showing over the past year, Crain’s reported, citing Colliers International data.

One of the biggest takeaways from April through June was the drop in the vacancy rate to 6.29 percent from 6.68 percent in Q1, according to the report.

The vacancy rate was as low as 6.15 percent in 2019, a number the city appears to be rapidly approaching in a hot industrial market.

Net absorption was another strong metric. During the first half of the year, net absorption stood at 14.7 million square feet, already surpassing the total for all of 2020. It is also projected to outpace the 26.6 million square feet in 2016, which set a record.


By the end of the second quarter, 57 industrial properties were under construction, covering 30.1 million square feet, according to the report. Roughly 40 percent of those buildings started construction on spec.

The explosion of e-commerce during the pandemic and the increased need for last-mile warehouses and distribution centers also helped to fuel the boom. In May, Abt Electronics said it was planning to double its Glenview warehouse to more than 800,000 square feet and school bus maker Lion Electric inked a deal for a 900,000-square-foot plant in Joliet.

[Crain’s] — Holden Walter-Warner






    Related Articles

    arrow_forward_ios
    2 N Lasalle Street & 200 W Jackson Boulevard in Chicago (us.jll.com, hearncompany.com)
    NY’s Foundation Capital, Nightingale aim to buy Loop office towers
    NY’s Foundation Capital, Nightingale aim to buy Loop office towers
    Blackstone Cashes out of industrial land in suburban Chicago for $57.5M
    Blackstone cashes out of industrial land in suburban Chicago for $57.5M
    Blackstone cashes out of industrial land in suburban Chicago for $57.5M
    DRW founder and CEO Don Wilson with the historic property (Restoration Hardware, DRW)
    Gold Coast Three Arts Club building sells to Brookfield Asset Management-backed fund
    Gold Coast Three Arts Club building sells to Brookfield Asset Management-backed fund
    Milwaukee Tool signs lease for Old Post Office space for new Chicago office
    Milwaukee Tool signs lease for Old Post Office space for new Chicago office
    Milwaukee Tool signs lease for Old Post Office space for new Chicago office
    The Civic Opera House at 20 North Wacker Drive (Getty)
    Mark Karasick’s 601W faces $195M foreclosure on Civic Opera House
    Mark Karasick’s 601W faces $195M foreclosure on Civic Opera House
    Two more residential and life sciences buildings greenlighted in Fulton Market
    Two more residential and life sciences buildings greenlighted in Fulton Market
    Two more residential and life sciences buildings greenlighted in Fulton Market
    Provender buys warehouse used to package vaccines for $30M
    Provender buys warehouse used to package vaccines for $30M
    Provender buys warehouse used to package vaccines for $30M
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    RT Specialty Doubles office space in move to Third Millennium building in West Loop
    arrow_forward_ios

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

    Loading...