Developers Pick Up the Pace in Tight Big Box Industrial Market
Demand for Chicago’s big box industrial product totaled 5.1 million square feet during the second quarter of 2022, as measured by net absorption. While this figure was still strongly positive, it also represented the lowest quarterly total since the fourth quarter of 2020 and was nearly half of the record 9.7 million square feet recorded during the fourth quarter of 2021. Seven speculative big box buildings totaling 3.9 million square feet were completed between April and June, four of which were delivered vacant. As a result, the big box vacancy rate, which had plunged to an all-time low of 2.61 percent in March, increased for the first time in seven quarters, ticking up by 31 basis points to 2.92 percent.