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First Quarter 2016 Market Peek

First Quarter 2016 Market Peek

NAI Hiffman Market Peek - 1Q 2016 1Q 2016 Market Peek | NAI Hiffman

First Quarter 2016

Market Peek 1Q 2016

NAI Hiffman is pleased to present the First Quarter 2016 Market Peek, a first look at the market statistics for the Chicago office and industrial real estate markets.

Market Peek

Industrial Market Continues Steady Improvement

  • The Chicago industrial market continued to expand this quarter, supported by positive net absorption that decreased the total vacancy rate to an unprecedented low level.

  • Construction completions totaled 2.7 million SF and included the 1.1 million SF build-to-suit for Saddle Creek Logistics in the I-80 Joliet Corridor. Projects underway total 13.1 million SF with 60% in development on a speculative basis.
1Q2016 Industrial Vacancy & Absorption

Office Vacancy Dip in CBD; Slight Bump in Suburbs

SUBURBS

  • The majority of the suburban office submarkets remained relatively unchanged this quarter while the North submarket experienced negative absorption due to existing tenants shuffling, including CDW, Horizon Pharma and Mondelez, that contributed to negative first quarter absorption.

  • A number of tenants committed to new leases in the 20,000-30,000 SF size range throughout the suburban office submarkets.
1Q2016 Suburban Office Vacancy & Absorption

CBD

  • Improved first quarter market fundamentals in the otherwise quiet East Loop and North Michigan Avenue submarkets contributed to positive quarterly performance for the overall CBD office market.

  • Three construction cranes now dot the skyline in the West Loop submarket as construction began during the quarter for CNA Center, an 807,000 SF office tower. Two additional office towers are underway at 444 W Lake St and 150 N Riverside Dr.
1Q2016 Downtown Office Vacancy & Absorption

For further information regarding the content of this market peek or if you are interested in attending a custom market overview presentation, please contact:

JOHN PICCHIOTTI
630.691.0608
jpicchiotti@hiffman.com

KELLY DEBOUVER
630.693.0645
kdebouver@hiffman.com

 
NAI Hiffman
 
NAI Hiffman, One Oakbrook Terrace, Suite 400, Oakbrook Terrace, IL 60181

First Quarter 2016 Market Reviews

Patrick Sullivan joins NAI Hiffman’s Investment Services Group