Industrial vacancies are at historic lows in the Chicago region, dropping 50 basis points over the second quarter to 4.9%, as asking net rents jump and year-to-date net absorption swells. 

A new report from JLL shows that activity picked up considerably along the I-55 corridor in the Windy City, pushing vacancy to the lowest level since Q3 2016. Year-to-date absorption in the market is 3 million square feet stronger year-over-year, while direct asking rents increased to $5.49 per square foot and sublease asking rents stayed steady at $5.30 per square foot.

A second generation manufacturing space lease inked by Tangent Technologies in the former Caterpillar plant in Montgomery, Ill., along the I-88 corridor, was the quarter's largest deal. The Montgomery submarket saw big blocks of Class C space get leased up during the quarter, driving vacancy to 2.7%, and the nearby Fox Valley submarket also showed low vacancy at the same figure.  In Lockport, the 610,000 square foot I-355 Business Center achieved full lease-up during the quarter thanks to a new Tesla lease and an expansion by Berlin Packaging.