Big Box Leasing Stays Strong as Developers Push to Deliver New Product
Chicago’s big box industrial vacancy rate increased for the second quarter in a row, climbing by 65 basis points to 3.57 percent during the third quarter of 2022. After bottoming at a record low 2.61 percent during the first quarter of the year, speculative construction completions increased over the past six months, pushing the vacancy rate up. Unprecedented demand for big box space since the last quarter of 2020 combined with record low vacancy resulted in a need for new speculative product. During the third quarter alone, developers started construction on an impressive 31 big box buildings totaling 15.5 million square feet, bringing the total under construction to a record 63 buildings totaling 31.5 million square feet.