Demand Continues To Set The Pace For Chicago Industrial Real Estate
The various Q3 industrial real estate market research reports we've studied come to the same conclusion: it's red-hot! According to Marcus & Millichap's Q3 industrial market research report, the 6.9% vacancy rate, a 10-year low, resulted in an average rent of $5.34/SF, 4% higher than the previous peak in 2008. The reduced amount of available inventory resulted in three straight years of rent growth, and Marcus & Millichap VP John Abuja tells Bisnow he predicts the vacancy rate to drop further by the end of the year, to 6.2%.
O'Hare continues to be a class in itself. John tells us vacancy rates there plummeted 200 basis points over the past 12 months to 4.6%. He says what’s surprising about O’Hare is the activity is equally split between Cook County—with an inventory of buildings reaching the end of their functional lives that will eventually be repurposed—and DuPage County ,which is benefiting from new construction and lower tax rates. There’s an overwhelming demand for space in both counties from air freight, locomotive and transportation logistics firms that isn’t going away anytime soon.