Chicago industrial market report
Q4 2023
The Chicago industrial market has seen a decline in construction activity due to factors such as rising interest rates and economic uncertainty. This decrease will result in a shortage of new inventory over the next 18-24 month. Currently, there is 20 msf under development, down 46% from 2022. A total of 41 msf was leased throughout 2023, down 22% from the yearly averages seen in 2016 to 2020.
Construction activity
While deliveries of new industrial space continued to rise in 2023, construction activity declined 46% from 2022. Currently, there is 20 msf currently being developed and of that, 70% is being built on a speculative basis.
Leasing activity
Leasing activity declined compared to the highs attained over the past two years. A total of 41 msf was leased in 2023, down 38% from 2022.
Rental growth
The Chicago industrial market continues to see strong rental growth, increasing 11.9% from 2022.
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