Big-Box Industrial Tenants Signed Leases At Record-Setting Pace In Q1
Chicago-area owners of big-box distribution centers secured a record-breaking amount of leasing in the first quarter, and as the majority of their tenants have low exposure to disruptions caused by the pandemic, at least moderate growth should continue this year.
There were 24 new leases signed, totaling 8.5M SF, a new quarterly record for the sector. That includes four leases for more than 1M SF, according to Colliers International’s latest report on distribution centers with more than 200K SF and ceilings 28 feet or higher. The metro’s vacancy rate fell 58 basis points to 7.95%, even though developers completed another 4.7M SF.
“Some of these transactions were pent up and a long time coming,” Colliers International principal Matthew Stauber said.
Much of that burst in demand came from e-commerce companies such as Amazon and do-it-yourself home improvement retailers such as Lowe’s, he added. Although many sectors of the economy took big hits over the past three months, these firms seem to be getting stronger, due to…
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