CHICAGO—The metro region's industrial market experienced another solid quarter, with the Southeast Wisconsin submarket leading the way, according to a new analysis by NAI Hiffman. Furthermore, developers delivered more than 2.5 million square feet of new space in the first quarter and have another 12.9 million square feet under construction, up from 9.6 million square feet under construction one year ago. The market has not surpassed its 20-year historical average of 14.4 million square feet of total deliveries since 2008.
The Chicago region saw 3.2 million square feet of positive absorption in the first quarter and the vacancy rate dropped by 10 bps to 7.84%, says Kelly Brown, senior research manager for NAI Hiffman.
Developers have more than 3 million square feet of space under construction in Southeast Wisconsin alone, the most of any submarket. Several others including the I-80 Joliet Corridor, I-90 Northwest, the I-55 Corridor and O'Hare have more than 1 million square feet under way, Brown adds. “We are seeing an increase in land acquisitions as developers take positions for future projects in both infill locations as well as greenfield submarkets.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
