Dynamics across Chicago market remain tight, but conditions show early signs of easing

The Chicago industrial market in Q3 2023 exhibited signals of a gradual return to more typical conditions. While vacancy remained below historical averages, it has either risen or held steady for five consecutive quarters and jumped 40 basis points from last quarter to 5.1%. Development has slowed precipitously in 2023 as developers react to uncertain demand and elevated interest rates. However, build-to-suit development of cold storage facilities across the Midwest is expected to increase in the near term, as virtually no supply existed amid an environment of heightened demand. Meanwhile, available subleases continued to flood the market, with more than 1.0 million net square feet added this quarter, including seven listings in excess of 100,000 square feet (sf).

Read the full report here