Benefiting from its place, strong rail and airport programs, Chicago’s industrial market stays sturdy and adaptable. Regardless of a discount within the industrial pipeline to half of final yr’s quantity, the metro stays one of the crucial energetic markets for industrial improvement. As of the top of August, the town had 10.3 million sq. ft of commercial area below development.
Chicago’s industrial market continued to show its energy this yr, main the Midwest with $1.9 billion in transactions in the course of the first eight months, and rating fourth nationally in gross sales quantity. Under, we’ve compiled CommercialEdge information for a present overview of the Windy Metropolis’s industrial market efficiency.
Driving success in industrial gross sales
Chicago led the Midwest with industrial gross sales amounting to $1.9 billion in the course of the first eight months of this yr, rating fourth nationally, in keeping with CommercialEdge information. A complete of 165 properties modified palms inside the metro, totaling 20.8 million sq. ft. Belongings exchanged palms at a median of $98 per sq. foot, the best within the area however nonetheless effectively under the nationwide common of $132.
Inland Empire ($263) and New Jersey ($230) have been the priciest metros, whereas Cleveland ($49) and Kansas Metropolis ($48) recorded the bottom common sale costs nationwide.
Stonepeak bought a three-building, 1.7 million-square-foot rail-served logistics portfolio within the Chicago market from CenterPoint Properties. The New York-based firm paid $125 million for the totally leased portfolio. Located within the CenterPoint Intermodal Middle–Joliet/Elwood—the largest inland port in North America—the properties are in Elwood, Unwell., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.
Growth pipeline stays regular
On the finish of August, Chicago had 10.3 million sq. ft of commercial area below development throughout 31 initiatives. The pipeline accounted for 0.9 p.c of present inventory, under the nationwide common of 1.9 p.c. The Windy Metropolis ranked fifth nationally on a sq. footage foundation and second regionally after Kansas Metropolis, in keeping with CommercialEdge information.
Within the first eight months of 2024, roughly 2.7 million sq. ft of commercial area broke floor in Chicago throughout 14 properties, representing 0.3 p.c of the whole inventory. The index was decrease than the nationwide common of 0.9 p.c.
In June, Dermody Properties broke floor on LogistiCenter at Nice Prairie, a 2.4 million-square-foot logistics park in Nice Prairie, Wis. As Wisconsin’s sole rail-served logistics park, the ability will be capable to accommodate build-to-suit initiatives starting from 250,000 to 1.8 million sq. ft.
Uline Inc. additionally began on the growth its campus in Kenosha, Wis., with a 1.4 million-square-foot addition. The distribution middle situated at 3002 128th Ave. will provide racking totaling roughly 882,900 sq. ft, in addition to 476 dock doorways and 41 bays.
Deliveries decelerate
Chicago’s industrial sector noticed 25 properties delivered year-to-date by means of August, totaling 9.4 million sq. ft. This represents 0.9 p.c of whole inventory, decrease than the 1.3 p.c nationwide determine. The metro’s industrial pipeline fell to just about half its year-ago quantity, when 17.2 million sq. ft of commercial area entered the market.
Amongst pers markets, Chicago surpassed Indianapolis (6.1 million sq. ft), Atlanta (5.8 million sq. ft) and New Jersey (5.8 million sq. ft). The Inland Empire (19.2 million sq. ft), Phoenix (20.2 million sq. ft) and Dallas (22.8 million sq. ft) recorded the best variety of industrial deliveries.
Logistics Property Co. lately accomplished Oak Forest Logistics Middle, a 664,453-square-foot industrial constructing situated at 16799 Cicero Ave. in Oak Forest, Unwell. The ability marked the developer’s eleventh venture in metro Chicago.
HSA Business Actual Property additionally delivered Highland Commerce Middle of Somers, one of many largest speculative industrial buildings in Wisconsin. Situated at 2655 113th Ave., the 918,884-square-foot distribution facility is located instantly off I-94 on the Burlington Street Interchange in Kenosha.
Emptiness charges surpass nationwide common
Chicago’ industrial emptiness fee on the finish of August clocked in at 7.3 p.c, increased than the nationwide common of 6.7 p.c and the three.7 p.c fee registered in 2023’s similar month, as CommercialEdge information reveals.
Different emptiness charges increased than the nationwide common have been reported in markets akin to New Jersey (8.1), Dallas (7.7 p.c) and Inland Empire (6.9). Different markets recorded decrease emptiness charges, akin to Atlanta (5.8).
WestRock signed a build-to-suit with Dermody Properties at LogistiCenter at Nice Prairie in Nice Prairie, Wis. Upon the ability’s anticipated supply subsequent yr, the corporate will lease greater than 580,000-square-foot.
Enterprise One Actual Property secured a 444,600-square-foot lease with John B. Sanfilippo & Son Inc. at Enterprise Park 47, an industrial constructing totaling 729,823 sq. ft in Huntley, Unwell. The deal is the most important industrial lease of the second quarter in Chicago’s North Kane County submarket, and the fourth largest within the Chicago metropolitan space.
