Chicago's Industrial Market Holds Its Own in Face of Pandemic, Recession
During the second quarter of 2020, the Coronavirus pandemic changed all of our daily lives - entire states shut down economies, supply chain disruptions took hold worldwide, and confusion and uncertainty impacted every industry, including commercial real estate.
Chicago's industrial market has demonstrated its resiliency during the unfolding crisis. While the industrial vacancy rate experienced a modest jump of 26 basis points to the highest rate in two years, net absorption remained slightly positive and an impressive 14.1 million square feet of new leases and lease expansions were signed, a near-record total second only to the 14.6 million square feet signed during the first quarter of the year.
While one tenant is responsible for more than half of the space leased during the second quarter of 2020, that demand helped the market avoid recording significantly negative net absorption during the period.