The Chicago industrial market has recorded its 22nd consecutive quarter of positive absorption in Q4 2015, according to CBRE Research. Data shows that the availability rate lowered to 6.5 percent—the lowest it has been since 1996.
Other highlights from the report include:
- The fourth quarter recorded 7.6 million square feet of positive absorption, bringing the annual total to 23.1 millions square feet.
- Of the top 25 transactions in Q4, 43 percent of them were with transportation and logistics companies, while 37 percent were from manufacturing companies.
- As the availability rate has continued to dip, rents have steadily risen for landlords. The average market rents climbed to $4.76 per square foot in Q4, representing a 5.78 percent increase from year-ago levels and considerably higher than the pre-recession peak of $4.53 recorded in Q1 of 2008.
- With this rent growth has come new construction activity, as 2015 ended with 15.3 million square feet of construction starts, up 16.6 percent from 2014.
Click here to read CBRE’s latest Chicago Industrial MarketView.