CHICAGO—On the surface, it may look like industrial tenants in the Chicago region took a bit of a breather in the third quarter. Leasing volume in the past three months totaled about 5.2 million square feet, or about two million square feet less than in the second quarter, according to a report from JLL. But experts say the market probably still has enough demand to absorb the roughly 15 million square feet that developers have under construction.
“We've had a little bit of a blip this year,” John Picchiotti, managing director and Chicago industrial brokerage lead for JLL, tells GlobeSt.com. However, “supply and demand are still in balance.”
He points out that of the 19.5 million square feet of new construction completed year-to-date, build-to-suits account for 8.5 million square feet, or about 45%. “That shows discipline on the part of developers.” In previous development booms, speculative buildings would account for up to 75% of the total.
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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.
