The Chicago-area industrial vacancy rate decreased by 10 basis points during the first quarter to 8.2 percent, a rate similar to what was witnessed during the highly active market of 2007, and 80 basis points below where it was a year ago. That’s according to NAI Hiffman’s First Quarter 2014 Market Peek, a sneak peek at the market statistics for the Chicago metropolitan industrial real estate market.
Nearly 1.4 million square feet of vacant space was absorbed during the first quarter, indicating strong demand, but less than the 4.4 million square feet absorbed last quarter likely due to the harsh winter and first quarter being a historically slower period, according to NAI Hiffman.
More than 10 million square feet of new industrial construction projects are currently underway, and an additional 12 million square feet will soon break ground or are in the planning stages. Of that activity, NAI Hiffman notes that 41 percent is speculative development, another 54 percent is build-to-suit activity, and 5 percent are building additions.
To view NAI Hiffman’s market peak, click on the image above.
For a complete list of first quarter industrial market statistics, click here.