CHICAGO—Many of the Chicago region's real estate sectors have begun to put up solid numbers, and the industrial market seems to be a standout. However, the vacancy rate for large distribution buildings increased 57 bps in the fourth quarter, according to Colliers International's latest research report. Still, it was the completion of four speculative big box properties totaling 2.1-million-square-feet that pushed the rates up. By the end of the year, the rate was 10.29%, up from 9.72% in the third quarter. Vacancy in big box facilities one year ago was a slightly healthier 9.88%.

The largest vacancy to enter the market was Pizzuti's recently completed 672,100-square-foot speculative facility at 790 Taylor Rd. in suburban Romeoville's Pinnacle Business Center, Colliers found. This accounted for roughly 23% of all new supply returning to the market during the fourth quarter. And two just-completed specs in the I-290 South market pushed that market's vacancy rate to 29.3% – the highest of any Chicago-area big box market.

Users that need a large amount of space will still find it difficult. “Although available big box supply climbed in the fourth quarter, there remain only two vacancies in spaces greater than 750,000-square-feet,” the firm found. “Year-end 2014 big box vacant industrial supply measured 14.8-million-square-feet, up 1.1-million-square-feet from the 13.7-million-square-feet reported in the prior quarter.”