On June 20, 100-plus leading real estate professionals gathered at the Hyatt Lodge Oak Brook in Oak Brook, Illinois, to mark REjournals’ 20th Annual Industrial Real Estate Summit.
Among the speakers who shared their expertise and insights on various aspects of the industrial real estate market: Adam Moore of First Industrial Realty Trust; Ben Bartel of National Property Consulting Group, LLC; Chris Moore of FCL Builders; Ed Halaburt of JLL Capital Markets; John Joyce of SVN; Joshua Hearne of Cawley Chicago; Kate Coxworth of JLL; Kelly Disser of NAI Hiffman; Matthew Grusecki of Northern Builders, Inc., Michael Brazeal of CenterPoint Properties; Mike Llewellyn of Alston Construction; and Peter Tsantilis of Liston & Tsantilis, P.C.
REjournals’ Ernest Abood, who hosted the event, expressed the prevailing sentiment as one of “cautious optimism.” Despite a cooling down period, the sector continues to show positive signs, with rising rents being a particularly encouraging trend.
Regarding the state of the market, SVN Managing Director John Joyce said: “After years of unprecedented growth, the Chicagoland industrial market has cooled. Due to high construction deliveries, the current vacancy rate for core markets has increased to 3.4%, up from the start of the year’s historical low mark of 3.2%. Additionally, the Federal Reserve has enacted ten interest rate hikes since March 2023 to try to tame inflation. With an estimated two more expected interest rate hikes, it is unknown if the Fed’s plan is working. The lending environment has impacted the commercial real estate markets, as it is more difficult to fund projects and expansions. As a result, overall transaction volume has decreased. Rental rates continue to grow due to limited new construction for buildings under 200,000 square feet, resulting in double-digit growth for three consecutive years.”
As the industry continues to evolve, events that foster in-person connection play a pivotal role in shaping the trajectory of real estate in Chicagoland. If you missed this event and want to stay up to date with all things REjournals, visit our EVENTS page.
