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Industrial Market Hits 11% Vacancy

CHICAGO-The one silver lining in the market is the food industry. As more people begin to eat in those companies are in need for more space.

By Katie Hinderer | Updated on June 17, 2009

CHICAGO-At the seventh annual RealShare Chicago, panelists on the Forecasting Leasing, Investment and Development in the Industrial Market confirmed this sector is seeing troubled times that will likely only further deteriorate. The vacancy rate in the area is 11%; and the mantra of the hour is blend and extend.

Panelist Steven Schnur, SVP of Chicago operations for Duke Realty Corp., said his firm is less concerned about the lease rate than capital preservation. They have renewed leases set to mature in 2009 to 2015.

“Tenants don’t want to move. They don’t want to disrupt their operations,” said Jim Deter, executive managing director for CB Richard Ellis. As a result they are looking for ways to stay in their current location or condense operations into fewer facilities.

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