February 14, 2019
Chicago’s industrial sector saw a 50% year-over-year increase in leasing activity in 2018. The fact that nearly half of last year’s leasing activity was in mid-sized deals between 50,000 and 300,000 square feet is one of four current industrial trends identified by Cushman & Wakefield.
Additionally, the firm cited continued low vacancy rates coupled with increasing asking rents, a steady supply of new construction and the effect that labor costs and labor shortages are having on relocation decisions.
Among trends to watch, Cushman & Wakefield points to the “automation explosion,” which will affect warehouse size and design and create new manufacturing jobs. Last-mile user activity is expected to remain strong as logisticians vie for space.
Last but not least, opportunity zones are likely to loom large on industrial developers’ radar screens, as available land becomes harder to find. That’s especially true for areas with strong job, income and population growth.
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