CHICAGO-For the second quarter in a row, Chicago’s industrial market hit a new high for vacancy in Q3. Vacancy has now reached 11.4% – the highest rate ever recorded here, according to Cushman & Wakefield’s Q3 industrial markets stats. This peak in vacancy is up from 11% at mid-year and has jumped from 9.3% a year ago.

“One of the significant findings, which we saw in our second quarter report also, was that overall vacancy continued to creep up,” Faith Ramsour, director of research for Cushman of Illinois, tells GlobeSt.com. “Overall vacancy is 11.4%, which is the highest ever recorded. We hit a high last quarter as well and it’s only continued to creep up.”

According to Cushman’s numbers, available inventory has hit 130 million square feet, but Ramsour makes the interesting distinction that the notable increase has been entirely in the amount of direct space available on the market. “When you’re looking at vacancy, the sublease vacancy rate has remained consistent,” Ramsour says. “It’s right now 0.6 percent, and it’s been in that range since mid-2000, so when we look at the overall vacancy rate, we’re looking at an increase in space available on a direct basis. It’s also the sixth straight quarter of negative absorption, meaning more vacant space came on the market than was leased to users.”

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