Chicago Industrials Pick up Speed

CHICAGO—Chicago’s industrial market has put together some solid quarters since the recovery began, but the second quarter of this year saw the most positive absorption in years, according to a study just released by NAI Hiffman. Net absorption totaled 5,688,263-square-feet between April and June, the highest tally since mid-2010. Furthermore, the overall vacancy rate improved by 18 bps during the quarter, decreasing to 8.09%, which NAI Hiffman terms “a rate that suggests a healthy, active market and encourages confidence in the market for landlords, investors, and developers.”

In addition to the healthy absorption, rental rates increased along with property sales and new development. In fact, developers have more than 11.4-million-square-feet under construction and delivered more than 4-million-square-feet of new product during the first half of the year.