Big Box Industrial Market Tighter Than Ever – What’s Next?
Chicago’s big box industrial vacancy rate continued to tank during the first quarter of 2022, dropping by more than a full percentage point to 2.61 percent, a record low by a wide margin. Net absorption in the market’s biggest and most modern buildings has been astounding since the fourth quarter of 2020, totaling at least 5 million square feet each quarter for a grand total of 45 million square feet over the six quarter period. Net absorption totaled 6.7 million square feet during the first quarter of 2022 alone. Unprecedented new leasing activity and the delivery of large build-to-suit projects has been behind the record demand. With such a tight market, new development will strongly influence net absorption over the coming quarters.