Demand for Industrial Increases Again
All market indicators were positive during the second quarter of 2019 in Chicago’s industrial market, resulting in the 29th consecutive quarter of positive net absorption. The market recorded 117 new leases or lease expansions totaling 9.5 million square feet between April and June, the third quarter in a row that new leasing volume increased.
As a result, the overall vacancy rate decreased by five basis points to 6.25 percent, the seventh successive period the rate has decreased and the lowest rate recorded since the first quarter of 2001.
Development continues to expand, with 17.1 million square feet under construction, more than half of which is being built on a speculative basis.