SPEC DEVELOPMENT!

Chicago industrial is more absorbent than a Bounty paper towel. Cushman & Wakefield national industrial head Jim Dieter tells us absorption is higher than it's been in years—and spec development is starting. He's moderating the national panel at this Thursday's Bisnow Chicago Industrial Summit at the Donald E. Stephens Convention Center. Sign up now to hear from him and 10 other pros!
 
As in all Tier 1 industrial markets, 500k SF-plus blocks have all but disappeared as corporations used the recession as an excuse to up their efficiency (building quality, supply chain, and proximity to workforce, transportation, and customer base), he says. The short supply means higher lease rates, though they've stayed in check since tenants are still driving hard bargains. "For every one company that pulled a trigger, three are still there on the sideline," he adds. But spec development is starting in some markets, and those shiny new buildings will prompt higher rates.

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