Conditions further tighten for industrial tenants in Chicago as demand swells
Asking rents across the Chicago industrial market continued to trend upward in the first quarter, increasing 7.5% quarter-over-quarter to $5.76 per square foot (psf). Nearly 7 million square feet (msf) of net absorption was observed this quarter, well above the long-term average. Vacancy has tracked downward for four consecutive quarters and stood at 6.8% this quarter, down 260 basis points (bps) from a year ago. With almost 28 million square feet of new product currently under construction, quality options exist for occupiers in the market, albeit at price points higher than some tenants are used to paying.