June 16, 2020
Although what’s next for Chicago’s big-box industrial market is uncertain amid the economic fallout of the COVID-19 pandemic, it’s clear that the sector was riding high prior to the stay-at-home mandates. A record 24 new leases and lease expansions totaling 8.5 million square feet were signed during the first quarter, reports Colliers International VP, market research Craig Hurvitz.
Of the new leases and expansions completed in big-box buildings during Q1, 62% were signed by users considered “low-exposure” to the COVID-19 situation, such as e-commerce tenants. Thirteen percent were in “moderate-exposure” categories like manufacturing, while the remainder were considered “high-exposure” tenants, like apparel companies.
Looking ahead, Hurvitz writes, “While industrial users like e-commerce and logistics companies, packaging providers, food and beverage users, and healthcare related industries will likely expand during these turbulent times, other users will defer real estate decisions until the impacts of the unfolding situation are more clear.”
Pictured: Fountain Square Commerce Center in Bolingbrook, IL.
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