April 2, 2019
Industrial construction in the Chicago region is up, way up, compared to a year ago, says Colliers International. And the steadily climbing percentage of speculative development that has been leased indicates that demand is keeping up with supply.
As the first quarter ended, about 16.9 million square feet of projects were going vertical across the metro area. That’s more than twice the 7.2 million square feet of construction that was underway in the year-ago period.
Two-thirds of the 54 new industrial projects are being built on spec, says Colliers. Nearly all are expected to deliver between April and September.
“This will result in nearly 12 million square feet of new speculative space being added to the market, likely causing a temporary rise in the market’s vacancy rate,” according to Colliers.
Furthermore, eight million square feet of new development is expected to begin in Q1 and Q2, Colliers says.
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