Chicago’s industrial landscape is seeing a decrease in both average lease term and landlord incentives

Chart shows average lease term and average free rent as percentage of lease term from Spring 2019 to Spring 2024
  • The 12-month average lease term peaked in 2022 reaching just over 67 months and has since decreased 11% to slightly under 60 months.  This decrease is attributable to tenant’s uncertainty on the economic environment and desire to maintain flexibility to adapt to market conditions and operational needs. 
  • The amount of free rent offered has been gradually decreasing since peaking pre COVID, now hovering around 4 months or 6.9% of the total  lease term.  This decline is indicative of the overall strength of the Chicago industrial market as demand and fundamentals remain strong.

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