NAI Hiffman is pleased to present its Third Quarter 2013 Market Peek, a sneak peek at the market statistics for the Chicago Metropolitan office and industrial real estate markets.
Industrial Vacancy Drops for 13th Quarter in a Row to 8.5%
The industrial vacancy rate decreased by 20 basis points during the third quarter to 8.5% as more than 4.2 million SF of vacant space was absorbed through continued leasing activity, user sales and completed built-to-suit and fully-leased construction projects. Momentum has been positive for the past 13 quarters, resulting in the absorption of more than 44 million SF of formerly vacant space.
Market-wide, over 6.5 million SF is under construction, the most development activity the market has seen since before 2009. 46% of the current construction activity is speculative development. During the third quarter alone, more than 2.7 million SF of new development projects were completed. The most active submarkets for new construction are the I-80/Joliet Corridor, the I-55 Corridor, Southeast Wisconsin and O'Hare.
Demand for Office Space Picks Up in the Suburban Market
Both the downtown and suburban office markets witnessed improving conditions during the third quarter. Demand increased in the suburban office market, as over 142,000 SF of vacant space was absorbed, pushing the overall suburban vacancy rate down 16 basis points to end the quarter at 20.13%. The East-West Corridor and North Suburban markets saw the most demand during the period, with the O'Hare Area and I-55 Corridor witnessing slightly negative net absorption.
Demand among downtown buildings remained positive during the third quarter, but was less than last quarter as 238,000 SF of vacant space was absorbed between July and September, compared to nearly 400,000 SF during the second quarter. This pushed the downtown vacancy rate down 26 basis points to end the quarter at 12.74%.
further information regarding the content of this market peek, please contact:
Craig Hurvitz | Director of Statistics and Market Information
630 693 0645 or email@example.com
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John Picchiotti | Chief Operating Officer, Brokerage
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