Chicago’s Industrial Market Sets Absorption Record in 2016
Chicago’s industrial market posted an impressive fourth quarter, bringing the net absorption total for 2016 to 26.6 million square feet, the greatest annual absorption tally the market has recorded. Over the course of the year, the vacancy rate dropped 62 basis points to 6.7 percent, the lowest rate witnessed since the third quarter of 2001. A total of 85 new construction projects were completed in 2016 totaling 22.3 million square feet, the greatest amount of new industrial product since 2005. At the end of the year, 58 buildings were under construction, amounting to an additional 21.9 million square feet to be added to the market’s inventory once completed. Asking rental rates continued to increase throughout the year to an average rate of $4.72 per square foot on a net basis during the fourth quarter.
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