On Thursday, May 29th, Bisnow’s 4th annual Chicago Industrial Real Estate Summit was held at the Hyatt Regency O’Hare, covering the active industrial market, future developments, capital market trends, acquisitions, and dealmaking.
John Picchiotti, NAI Hiffman’s Chief Operating Officer – Brokerage participated in the “Leasing & Development” panel.
Panel: Leasing & Development
Brian Liston – Partner, Liston & Tsantilis (moderator)
John Picchiotti – COO – Brokerage Services, NAI Hiffman
James Martell – Presidnt, Ridge Development
Mark Goode – Principal, Venture One Real Estate
Ryan O’Leary – Vice President – Leasing & Development, Duke Realty
Britt Casey – Executive Director – Industrial Services, Cushman & Wakefield
Liston – Let’s start out with the overall market conditions. What are you seeing?
Picchiotti – Overall vacancy is at 8.3%, which is low even when you look at some of the key
submarkets. Central DuPage is at 4.6%, which is historically low, and also when you look down at the I-55 Corridor, vacancies are right around 8%. If you’ve been in this market for a while, vacancy in the I-55 Corridor has always been in the mid-to-high teens. Currently there is about 10 million SF under construction; with 30% of that development being speculative. Another 10 million SF is planned to begin in the next few months, and that space is split 50/50 between speculative and build-to-suit. We are starting to see the trends moving forward and there is certainly a wind behind us. Since the middle of 2010 we have seen 15 consecutive quarters of positive net absorption, totaling about 50 million SF in that time.
Click here to view our full recap on the Aquisition & Dealmaking and Leasing & Development panels.
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