This just in: the industrial market is on track to see construction deliveries exceed a number not seen since 2008. “Vacancy” remains the buzzword in the Chicagoland area quarter after quarter as it continues to decline—and this time by almost a full percentage point. At a current 6.5 percent vacancy rate, this is now the lowest recorded since the recession.
The third quarter saw 12.3 million square feet of positive absorption in industrial. As of now, a total of 17.5 million square feet remains under construction in the Chicago market, according to a recent Third Quarter 2016 Market Peek report by NAI Hiffman.
And that’s not all. There’s still 7.2 million square feet of new supply scheduled to deliver by year-end, the report shows. Third quarter had nearly 5.6 million square feet of new supply, including 3M’s large 987,120-square-foot build-to-suit in DeKalb.
NAI Hiffman reports that if Batory Foods’ 678,000-square-foot distribution center in Wilmington, and all other projects currently in the works are complete as scheduled, new construction deliveries in 2016 will total more than 20 million square feet for the first time in eight years.
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