Key Takeaways |
Chicago’s industrial vacancy rate decreased by 33 basis points during the second quarter to 4.58 percent, another new record low.
Over the past six quarters, the vacancy rate has dropped by an astonishing 215 basis points, one of the fastest drops recorded in the market’s history.
The vacancy rate has fallen below 4 percent in 10 of the market’s 22 submarkets and below 3 percent in 5 submarkets, despite continued speculative development. Vacancy rates this low were previously unheard of in Chicago’s industrial market.
Speculative construction continued to ramp up during the second quarter, with 20 buildings totaling 8.1 million square feet starting construction during the period, 19 of which are being built on a speculative basis.
The vacancy rate in recently-completed speculative buildings ticked up 30 basis points to 7.3 percent during the quarter, the first increase in nearly three years.
Chicago Market | 22YTD (Interactive Map - Click dots for more information)
Craig Hurvitz
Vice President
craig.hurvitz@colliers.com
+1 847 698 8295
Back to the top
For information and inquiries, please contact us.
Chicago Industrial
Highlights
Industrial Demand Stays Strong
Despite Headwinds
Q2 2022
Chicago Industrial | Market Statistics
This document has been prepared by Colliers for advertising and general information only. Colliers makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers and/or its licensor(s). ©2022. All rights reserved.
Q2 2022
Build-to-suit deliveries helped push demand past 12 million square feet
Net absorption strong again
On pace to set another record
Year-to-date demand on pace to set another record
Grant Levin
Research Analyst
grant.levin@colliers.com
+1 847 444 5730
Chicago North
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
87,844,248
893,399
0
1,450,237
8,902,460
10.13%
1,456,986
75,625
1,332,278
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
86,950,849
0
893,399
257,311
9,026,617
10.38%
412,911
27,625
314,722
Chicago South
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
142,110,992
112,000
1,344,416
2,038,408
2,532,534
1.78%
2,659,268
311,826
849,976
O'Hare
1 Chicago North
2 Chicago South
3 O’Hare
4 North Suburbs
5 Lake County
6 Central DuPage
7 Northwest Suburbs
8 I-290 North
9 I-290 South
10 South Suburbs
11 Elgin I-90
12 McHenry County
13 Fox Valley
14 I-88 Corridor
15 I-55 Corridor
16 DeKalb County
17 Far South Suburbs
18 Northwest Indiana
19 Southeast Wisconsin
20 I-80 Joliet Corridor
21 I-39 Corridor
22 Rockford Area
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
57,748,116
601,276
0
582,100
1,191,592
2.06%
595,240
269,983
1,019,492
North Suburbs
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
78,147,330
133,136
677,447
2,307,872
5,591,525
7.16%
1,491,248
833,636
445,309
Lake County
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
76,488,702
337,911
911,344
1,601,353
1,648,540
2.16%
3,032,321
482,289
2,183,396
Central DuPage
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
37,690,073
466,023
250,000
997,852
1,950,560
5.18%
419,202
156,721
281,490
Northwest Suburbs
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
77,243,413
649,844
909,666
814,561
3,040,885
3.94%
1,996,432
285,330
1,083,650
I-290 North
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
47,319,002
0
409,245
310,142
992,177
2.10%
419,041
167,860
339,721
I-290 South
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
112,218,483
718,200
1,497,050
956,336
4,187,119
3.73%
1,979,879
307,126
2,327,765
South Suburbs
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
35,109,936
0
1,860,320
919,807
1,193,246
3.40%
1,159,404
465,945
850,049
Elgin I-90
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
29,998,181
0
0
12,000
2,967,354
9.89%
0
22,630
90,680
McHenry County
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
36,982,434
141,855
1,906,858
602,520
1,112,050
3.01%
894,548
113,028
595,603
Fox Valley
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
77,691,825
340,193
1,571,451
1,419,188
3,380,550
4.35%
1,568,184
472,896
1,354,616
I-88 Corridor
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
104,323,528
1,685,440
2,142,036
2,715,060
1,507,122
1.44%
4,318,884
74,331
3,622,050
I-55 Corridor
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
22,929,078
0
2,400,000
147,650
1,204,407
5.25%
140,970
35,000
28,320
DeKalb County
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
49,895,896
0
897,000
382,964
2,422,639
4.86%
300,428
0
-82,536
Far South Suburbs
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
56,326,869
261,638
624,834
0
3,223,551
5.72%
521,475
0
754,854
Northwest Indiana
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
72,103,858
2,888,532
6,644,477
2,498,255
4,280,214
5.94%
2,620,356
87,580
2,463,979
Southeast Wisconsin
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
106,428,887
3,125,268
4,143,103
2,023,561
4,880,042
4.59%
2,526,936
16,500
2,881,687
I-80 Joliet Corridor
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
17,919,915
0
0
125,150
617,645
3.45%
0
125,150
0
I-39 Corridor
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
60,875,346
560,129
500,000
322,475
5,119,205
8.41%
455,473
45,990
972,057
Rockford Area
Total Inventory SF
Completions SF
Under Construction SF
New Vacancies SF
Vacant Space SF
Vacancy Rate
New Leasing Activity SF
User Sale Activity SF
Net Absorption SF
1,287,058,209
9,204,545
21,061,296
19,733,541
55,022,966
4.28%
25,050,999
4,558,331
19,639,589
Metro Chicago Totals
Metro Chicago Totals
157 new leases and lease expansions totaling 12.1 million square feet were signed between April and June.
For Colliers | Chicago's most up-to-date market analyses
please visit the research section of our website.
On pace to set another record
Demand continues to outpace construction deliveries
an impressive 215 basis points over the past six quarters
Chicago’s industrial vacancy rate has dropped
near two percent or below
Several infill submarket vacancy rates
near two percent or below
I-55 Corridor vacancy rate the lowest in the market
near two percent or below
Tight market resulted in slight drop in new leasing activity
22Q2 largest new industrial leases
Big leases still getting signed, especially in new product
New leases greater than 500,000 SF signed per year
Despite record low vacancy, big leases still being signed
New leases greater than 500,000 SF signed per year
Spec construction ramping up, now 69% of total underway
Total spec delivered since 2013 by submarket and percent leased
Recent spec has leased well market-wide
in recent spec construction for first time since 2019
Spec deliveries pushed vacancy rate up
in recent spec construction for first time since 2019
Average asking rent up 6.5% year-over-year
in recent spec construction for first time since 2019
Average asking sale price climbing quickly as well
