Chicago market not yet clear of downcycle as fundamentals remain out of balance

A flurry of occupier move-outs, combined with an environment of softened demand, pushed vacancy higher throughout the Chicago industrial market in the second quarter of 2024. Market vacancy increased 220 basis points (bps) from a year ago to 6.9%, the fourth consecutive quarter of growth, although vacancy remained in line with observed pre-pandemic levels. Net absorption was barely positive at the year’s midpoint as some occupiers reevaluated their space requirements. Meanwhile, subleases increased to levels not seen in more than a decade, with more than 9.3 million square feet(msf) available, although the pace of sublease stock growth exhibited a slowdown.

Read the full report here