Industrial Rents Hit Pre-Recession Level

CHICAGO—The Chicago-area industrial market stayed on the road to recovery in the third quarter, according to Cushman & Wakefield’s just–published MarketBeat report. The firm’s researchers found that the overall vacancy rate has improved for the 14^th consecutive quarter, sinking to just 6.6% at the end of the third quarter, down 1.2% from this time last year, helping to push up rental rates to pre-recession levels. Furthermore, the total square-feet leased for the metro region is 27.7-million-square-feet year-to-date, an 8.0% increase year-over-year. The total puts Chicago on track to surpass the 30.9-million-square-feet leased in 2013.

“The uptick in activity within the industrial leasing sector is a strong indication of the demand for warehouse/distribution and manufacturing space in the next few years,” said Simone Schuppan, director of market research for the firm’s central region and a contributor to the report. “Consistent growth will manifest Chicago as one of the major industrial centers in the world.”