JLL Ind. Snapshot Shows “Sense of Urgency”

CHICAGO—Jones Lang LaSalle recently released a quick quarterly snapshot of the metropolitan area’s industrial market which shows falling vacancy rates, lots of absorption and a robust development pipeline. The overall vacancy rate for industrials in Chicago and its suburbs has sunk to just 8.4%, according to the firm’s second quarter data, down from 10.6% at the end of the second quarter last year. And net absorption stood at 8,872,623-square-feet for the year, compared to 7,348,188-square-feet by the end of last year’s second quarter. Furthermore, “occupiers are making leasing commitments with a sense of urgency as they recognize that the availability rate has dropped below 13%.” Last year at this time, that rate was 14.5%, and now stands at 12.8%, the data show.

Much of the increased activity came from consumer electronics providers and furniture companies, JLL researchers say, most likely due to a gathering economic recovery that has encouraged many people to make the big purchases they put off put off during economic hard times.