Chicagos 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.
May 8, 2024
US-IL-CHDWTN Chicago