Impressive Leasing Velocity Results in Strong 2018
Chicago's industrial market recorded more than 500 new leases and lease expansions greater than 10,000 square feet in 2018, totaling 32.7 million square feet. This is the greatest annual new leasing volume since 2015, and another indicator that the local industrial market continues to thrive.
Seventeen new leases or lease expansions greater than 300,000 square feet were signed over the course of the year, helping to push the overall vacancy rate down to 6.34 percent, the lowest rate recorded since 2001.
Net absorption was strongly positive again in 2018, totaling 16.2 million square feet. Over the past three years, net absorption has totaled an impressive 61.7 million square feet. These three years have been the strongest of the current real estate cycle by far.
While construction deliveries dropped off a bit during 2018, allowing some of the recently-completed space to be absorbed, a new wave of development is well underway. 61 buildings totaling 19.0 million square feet are currently under construction, the most space under development since 2017.