NAI Hiffman is pleased to present its Second Quarter 2013 Market Peek, a sneak peek at the market statistics for the Chicago Metropolitan office and industrial real estate markets.
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Conditions Continue to Gradually Improve in the Office Market
While the pace of absorption in the downtown office market increased during the second quarter as nearly 400,000 SF of vacant space was absorbed through elevated leasing activity, the suburban office market experienced a slight setback. Net absorption in the suburbs was negligible due to several sizeable new vacancies offsetting the effects of continued leasing activity.
The suburban vacancy rate remained unchanged at 20.3%, but decreased by 30 basis points downtown to end the quarter at 13.0%. Despite the hiccup in the suburbs during the second quarter, absorption remains positive for the first half of the year, totaling more than 360,000 SF. The downtown market has absorbed more than 640,000 SF through the first six months of the year.
Industrial Vacancy Drops Below 9%, New Construction Picks Up
The industrial vacancy rate dipped below 9% for the first time in more than five years, ending the quarter at 8.7% as an additional 2.6 million SF of vacant space was absorbed, bringing the tally for the first half of 2013 to more than 7.1 million SF of net absorption. The active I-55 Corridor submarket absorbed more than 1.1 million SF alone, highlighted by Peacock Engineering leasing 532,000 SF in Romeoville and Waters of America leasing 367,000 SF in Woodridge.
Market-wide, over 6.5 million SF is under construction, the most development activity the market has seen since before the recession. During the second quarter alone, nearly 2.5 million SF of new construction broke ground. The most active submarkets for new construction are the I-80/Joliet Corridor, the I-55 Corridor and O'Hare.
For further information regarding the content of this market peek, please contact:
Hurvitz | Director of Statistics and Market Information
630 693 0645
If you are interested in attending a custom market overview presentation, please contact:
Picchiotti | Chief Operating Officer
630 691 0608