Put the pedal to the metal: big box buildings smash more records
Big box demand – as measured by net absorption – set a new high for the second time during 2021 during the third quarter, totaling 8.6 million square feet. This demand, largely influenced by continued strong new leasing in big box buildings and build-to-suit completions, pushed the year-to-date net absorption tally to 23.9 million square feet, a total 37 percent greater than any previous annual total, with another quarter to go. As a result, the vacancy rate among Chicago’s biggest and most modern buildings dropped by 47 basis points between July and September to 5.83 percent, one of the lowest rates ever recorded, and the first time the big box vacancy rate has been below the overall industrial vacancy rate since records have been kept.
