CHICAGO—As reported in GlobeSt.com, the demand for class A distribution buildings that provide more than 300,000 square feet of space has soared in many US markets, and experts believe developers will continue to build at a robust pace at least through the end of 2017. This is especially true in the Chicago region, which, even more than other core markets, has seen e-commerce drive demand for new product.
The importance of e-commerce in Chicago is illustrated by the central role of Amazon. In 2016, the internet giant signed 30% of the new big-box leases in Chicago, according to the new report on the sector by Colliers International. And the firm's activity increased as the year progressed. Amazon leased a total of two million square feet across three properties during the fourth quarter, including a 747,000 square foot spec project at Laraway Crossings Business Park in Joliet.
There are 300 big-box buildings in Chicago, totaling 167 million square feet, according to Colliers. Nearly 41 million people live within a 250-mile radius of Chicago's industrial core, and that has brought occupiers into the market in droves. The region saw nearly 13 million square feet of occupancy gains within the big-box sector in the past year alone.
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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.
