Over the course of 2014, Chicago’s industrial market absorbed an impressive 11.7 million SF of vacant space, according to NAI Hiffman’s Year-End 2014 Market Peak. Net absorption totaled nearly 2.9 million SF during the fourth quarter alone, outpacing the 2.2 million SF absorbed during the third quarter.
The industrial vacancy rate improved by 44 basis points in 2014, ending the year at 7.95%, the first time vacancy has dipped below the 8% threshold since 2001, 13 years ago.
During the fourth quarter, nearly 3.5 million SF of new construction projects were completed, bringing the tally for deliveries in 2014 to just shy of 10 million SF. More than 15.5 million SF remains under construction, with more than 1 million SF underway in the Southeast Wisconsin, I-80/Joliet Corridor, I-90 Northwest, I-55 Corridor, and O’Hare submarkets.