CHICAGO—The Chicago region's industrial market has now seen 20 consecutive quarters of positive net absorption, according to a new report from Newmark Grubb Knight Frank. And even though its vacancy rate remained steady at 8.3%, the firm attributes this to the delivery of several large speculative projects that countered the robust leasing activity.
“As these modern, state-of-the-art spaces are leased by tenants expanding within the market, the vacancy rate is expected to improve further throughout 2015,” the firm says.
In the first quarter, the market absorbed almost 4.3 million square feet, a slight decline from the fourth quarter of 2014 but an increase over the preceding three. Developers completed seven spec projects totaling more than 2.2 million square feet, and with six still vacant, they added about 1.5 million square feet of vacant space to the market.
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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.
