In 2023, Chicago achieved a new record in industrial completions with a remarkable 40.1 million square feet of new construction delivered, according to Colliers’ report. This represents an annual increase of 28 percent compared to the previous record set last year.
The Q4 Chicago Industrial Market Report by Colliers for 2023 highlighted that speculative construction dominated the market, with developers completing 99 buildings totaling at 33.1 million square feet – accounting for about 82 percent of all deliveries. As a result of these speculative completions, the industrial vacancy rate steadily increased throughout all four quarters in this year.
By December’s end, there was almost one percentage point rise from last year’s closing rate at just over four and half percent to five and quarter percent this time around. In addition to this growth in vacancies due to speculations being realized on ground level; leasing activity also saw significant progress during Q4 as well – reaching eight million square feet which brought total leasing volume up-to thirty-five point six (35 .6) millionsquarefeet by years-end .
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