Industrial Improving

Vacancy rates decreased 30 bps during Q4 in Chicago's industrial submarkets, according to stats from NAI Hiffman, the second consecutive quarter of improvement. It was helped by the 1.5M SF of absorption in the Joliet market, including the 860K SF Navistar lease in Cherry Hill. Vacancy fell from 11.8% to 11.5%, 60 bps from its peak at 12.1% last summer, NAI's Craig Hurvitz tells us. 2010 was also the first year since 2007 for positive absorption, with 2.2M SFcoming off the market.
Top submarkets in Q4 included Southeast Wisconsin (with a whopping 2.2M SF coming off the market) Joliet, I-55 (where Duke is developing a new building among the 1.8M SF that was absorbed) and I-88 (1.6 M SF absorbed). Still holding back—The Chicago North and South markets (negative 2.9M SF combined absorption), North Cook (dare we say, losing out to Wisconsin with negative 1.1M SF) and O'Hare (negative 1.1M SF). About 1.6M SF is under construction, mostly in the Joliet submarket.

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