Fundamentals revert to more commonly observed levels across Chicago industrial market

Slackened demand and a deceleration in leasing activity across the Chicago industrial market pushed vacancy higher in the first quarter of 2024. Vacancy increased 190 basis points (bps) from a year ago to 6.8%, marking three consecutive quarters of increasing vacancy, although it remained commensurate with observed pre-pandemic levels. Accordingly, net absorption remained in positive territory to start the year but has fallen off from the peak of the pandemic as many occupiers paused expansions and reevaluated space requirements. Signals of the occupier pullback were evidenced by nine sublease offerings in excess of 100,000 square feet (sf) that were brought to market in the first quarter.

Read the full report here