CHICAGO—In the second quarter, the amount of leasing activity among the Chicago region's largest industrial properties was quite spectacular, and at least in that sense, the past few months was a bit of a letdown. However, the vacancy rate for these big box facilities has continued to decline, and Jack Rosenberg, national director for logistics and transportation for Colliers International, tells GlobeSt.com that one quarter can't tell the market's whole story, and over the next year or so he expects to see it put up solid numbers.

"Part of the reason for the decline in leasing activity is a lack of available product," he says. "I have a customer who needs about 600,000 square feet in the I-55 area by June 1st, and there is not one building available." It's just one example of how the amount of leasing activity in a given quarter may not fully reflect just how much demand is out there waiting to be fulfilled. Developers will, however, have three specs ready by early 2017 that should fit this client's requirements quite well.

The market recorded about 3.2 million square feet of net absorption in the third quarter, significantly less than the roughly 4.9 million square feet in the second, according to Colliers' most recent data. And at 2.4 million square feet leased, the third quarter volume was less than half the figure reached in the second. Still, the vacancy rate among the big box facilities has continued to sink, falling from 9.31% in the second quarter to just 8.67%, a decline of 64 bps.