June 27, 2019
Rain delays don’t affect only the starting times of baseball games. The wet spring that the Chicago region has experienced has pushed back completion of several of the 30 speculative industrial projects now underway, says Colliers International.
Many of these projects were expected to be completed during the second quarter, Colliers says. However, rainy weather and delays from precast manufacturers have pushed back the delivery schedule to Q3 on many projects.
The expected delivery of some 7.1 million square feet of vacant spec space during Q3 could cause a temporary rise in the vacancy rate, says Colliers. However, the longer-term trend for spec development has been upward.
As Q2 ended, 68.2% of the 61 million square feet of spec delivered since 2013 has been leased. “This figure has increased each of the past eight quarters,” indicating that demand for spec is outpacing new supply, according to Colliers.
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