CHICAGO—Chicagoland retailers should have steady tailwinds for the rest of the year, and a continued slowdown in new construction projects will most likely tighten up the vacancy rates in many submarkets, according to a new market forecast from Marcus & Millichap.
Developers will add just another 1.3 million square feet of new space to the inventory, mostly in the suburbs, one of the lowest amounts in 11 years and a big drop-off from 2016, when 3.2 million square feet were completed. Still, M & M also says tenants will absorb about 2.5 million square feet of space in 2017, which would make it the fourth year in a row where absorption outpaced new supply.
The reason for the current drop-off in construction is simple.
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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.
