Chicago industrial market may finally be slowing after a prosperous run

The Chicago industrial market, which has run white-hot since the start of the pandemic nearly three years ago, exhibited signs of a slowdown at the close of 2022. While vacancy remains well below the long-term average, it has risen for two consecutive quarters, closing the year at 4.6%. Demand appears to be cooling, though asking-rate growth has not yet abated, increasing 3.7% over the quarter to $5.60 per square foot (psf). Rates have risen steadily over the past two years due to strong occupier demand and upward pressure from inflation. However, Chicago remains a comparative value compared with U.S. coastal markets, where rents are observed at two or three times what they are locally.

Read the full report here