NAI Hiffman is pleased to present its Year-End 2013 Market Peek, a sneak peek at the market statistics for the Chicago Metropolitan office and industrial real estate markets.
Industrial Market Absorbs 16.7 Million SF, the most since 2008
The industrial vacancy rate decreased by 20 basis points during the final quarter of the year to 8.3% as more than 5.2 million SF of vacant space was absorbed. Over the course of 2013, the vacancy rate has dropped nearly a full percentage point and 16.7 million SF of space was absorbed, outpacing last year's tally of 14.6 million SF and 2011's total of 13.9 million SF.
Currently, more than 8.6 million SF is under construction throughout the industrial market, and 3.4 million SF was completed during the fourth quarter alone, bringing the total delivered during 2013 to 11 million SF, the most new construction activity in five years.
The forecast for 2014 looks positive for Chicago's industrial market, as the economy continues to improve and 2013 posted the strongest demand witnessed since 2007.
Leasing Activity Expands, Suburban Vacancy Drops Below 20%
The improvement trend witnessed in the office market over the past three years continued through the end of 2013. Over the course of the year, more than 960,000 SF of vacant space was absorbed in the suburban office market, with about 458,000 SF absorbed during the fourth quarter alone. This activity dropped the suburban vacancy rate by 25 basis points to 19.9% during the fourth quarter, the first time this rate has been below 20% in five years.
In the downtown office market, more than 1.1 million SF of vacant space was absorbed during 2013, with the fourth quarter seeing a tally of about 242,000 SF absorbed through continued leasing activity. The downtown vacancy rate dipped 23 basis points during the final quarter of the year to 12.5%, a rate nearly a full percentage point below the rate recorded a year ago.
Looking towards 2014, the outlook for Chicago's office market continues to look positive, as more than 2 million SF was absorbed during 2013 and leasing activity continues to pick up.
For further information regarding the content of this market peek, please contact:
Craig Hurvitz | Director of Statistics and Market Information
630 693 0645
If you are interested in attending a custom market overview presentation, please contact:
John Picchiotti | Chief Operating Officer, Brokerage
630 691 0608
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