Big box industrial space in the Chicago market recorded negative absorption in the first quarter of the year, the first time this has happened in eight years, according to the latest research from Colliers.
In its Chicago Big Box Industrial Research Report, Colliers said that big box spaces in the Chicago market recorded negative 1.2 million square feet of absorption in the first quarter of the year. That marks a 4.4-million-square-foot swing from the positive 3.2 million square feet of absorption that the Chicago-area big box industrial market recorded in the fourth quarter of 2024.
Colliers defines big box space as modern distribution facilities totaling 200,000 square feet or more with clear heights of at least 28 feet.
In its report, Colliers said that the vacancy rate for this space in the Chicago market increased by 78 basis points to 9.44% in the first quarter. The vacancy rate for this space in the fourth quarter of 2024 stood at 8.64%.
What’s behind the jump in vacancy rate? Colliers says that the rise was primarily because of an influx of newly vacant second-generation space and not because of new construction.
In other big box news, Colliers reported that more than 1.3 million square feet of new big box space was completed in the Chicago market in the first quarter of the year. That, too, is down, a dip from more than 3.4 million square feet of construction completions in the fourth quarter of last year.
Colliers reported that more than 8.2 million square feet of new big box space is currently under construction in the Chicago market. That is up from more than 5.8 million square feet during the last three quarters of 2024.
