Chicago’s industrial vacancy rate increased for the first time since Q4 2020 during the first quarter of 2023, according to Colliers. A record amount of twenty speculative construction projects totaling 7.1 million square feet were delivered during the quarter, introducing 5.4 million square feet of vacant space to the market and pushing up overall industrial vacancy by 3 basis points to 4.53%.
Despite this increase in vacancies, Colliers noted continued strength in leasing activity as tenants signed 127 new leases or lease expansions totaling 12.1 million square feet between January and March – a 30% increase over last quarter’s total and largest quarterly total since Q2 2022 – resulting in net absorption at 7.4 million square feet for the period; slightly below last quarter’s but still above five-year average figures
