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2019 Q4 Chicago Industrial Market Report

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Chicago's Industrial Market Breaks Leasing and Spec Records in 2019

A record 38 million square feet of new leases and lease expansions were signed during 2019 among 460 leases. The fourth quarter of the year set a record of its own, with 11.6 million square feet of new leasing volume recorded, although 3.9 million square feet of that activity was build-to-suit leases or pre-leases in planned or under construction speculative development buildings, which won't impact the market statistics until the projects are delivered.

Developers set a record as well, delivering 52 speculative projects totaling 15.1 million square feet during 2019, more than any other year during the current development cycle. Speculative deliveries totaled 4.7 million square feet during the fourth quarter of 2019 alone, the greatest quarterly total since 2017.

This influx of new speculative space, much of which was delivered vacant, resulted in the market's vacancy rate increasing by 10 basis points to 6.25 percent during the final quarter of the year. The slight increase follows eight consecutive quarters of vacancy rate decreases. The current rate is nine basis points below the 6.34 percent rate recorded at the end of 2018 and remains one of the lowest rates recorded since 2001.

Industrial Report Chicago

2019 Q4 Chicago Industrial Market Report

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Craig Hurvitz

Senior Director of Research

Chicago - Rosemont

I am vice president, market research at Colliers International | 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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