CHICAGO—Chicago-area industrial developers have gone on a speculative building spree since 2013, and a steady stream of tenants have been at hand to occupy many of the new structures. Since the current development cycle began in 2013, builders have either completed or started 152 of these projects, a total of 42.4 million square feet, according to a new update from Colliers International. And users have leased more than 49% of this new space.
“That number has continued to rise every quarter,” Craig Hurvitz, vice president, market research at Colliers International in Chicago, tells GlobeSt.com. “Two years ago, it was closer to 30%. That means that demand is keeping up with the new supply, so far.”
The new year will bring some significant adjustments. Amazon, for one thing, will most likely slow down the pace of its leasing. “I can't see them leasing another 4.5 million square feet in the calendar year,” Hurvitz adds, the way it did in 2016.
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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.
