Industrial Demand Stays Strong Despite Headwinds
Demand for space in Chicago’s industrial market matched the past two quarters as measured by net absorption, despite inflation at a 40-year high and economic uncertainty. Net absorption totaled 12.1 million square feet during the second quarter of 2022, slightly outpacing last quarter’s total of 11.7 million square feet.
- Net absorption slightly exceeded the past two quarters at 12.1 million square feet despite the record-low vacancy rate.
- New leasing activity dropped during the second quarter of 2022 due to the tight market, but the vacancy rate continued to fall, dropping to a record 4.58 percent by the end of June.
- Developers are making a big push to deliver a record amount of speculative development over the coming quarters to meet the record demand witnessed over the past 18 months.