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2019 Q3 Chicago Industrial Market Report

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Big Leases, Build-to-Suit Deliveries Push Demand to New High

Demand reached a new high during the third quarter of 2019, as net absorption totaled 9.2 million square feet for the period, the greatest quarterly total since the current cycle began. This impressive gain in occupancy was buoyed by the delivery of 4.6 million square feet of build-to-suit construction projects, also a record for the ongoing development cycle. 

The market recorded 111 new leases or lease expansions totaling 8.2 million square feet, highlighted by a 1.2-million-square-foot lease by Target and a 826,755-square-foot lease by UNIS Logistics, both in Joliet. Due to this activity, the overall vacancy rate decreased by 10 basis points to 6.15 percent, the eighth quarter in a row this rate has decreased and the lowest rate recorded since the first quarter of 2001. 

27 construction projects totaling 8.8 million square feet were delivered during the third quarter of 2019, more than any other quarter since the development cycle began in 2013. 68 projects totaling 17.6 million square feet are under construction - 49 of these projects are being developed on a speculative basis, totaling 11.8 million square feet.

Industrial Report Chicago

2019 Q3 Chicago Industrial Market Report

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Craig Hurvitz

Senior Director of Research

Chicago - Rosemont

I am vice president, market research at Colliers | Chicago and lead the Industrial Advisory Group’s market research initiative. I am responsible for managing and maintaining the industrial properties database, which includes property sales and leases, tenant information and comparable transactions. I have a deep understanding of the Chicago-area industrial real estate market and provide in-depth analyses, reports and market trends that are referenced by a diverse group of clients including landlords, appraisers and developers. I am considered an expert in the field and am frequently featured in industry newspapers and publications. 

I have more than 10 years of industry experience having served as the director of research for both NAI Hiffman, and most recently Newmark Grubb Knight Frank. In this role, I oversaw the local research departments and provided comprehensive reports on market statistics in the Chicago and regional commercial real estate markets.

I began my real estate career as director of marketing for Rosemont-based Epic Realty Partners, now affiliated with Transwestern. 

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