July 17, 2018
At 77% of the total square footage, speculative development represents an outsized share of Chicago-area industrial product now under construction, Colliers International has reported. However, judging by leasing momentum, developers aren’t getting ahead of themselves.
Since 2013, according to Colliers, 62% of the nearly 50 million square feet of newly-built spec space has been leased. “This figure has increased every quarter over the past year, indicating that demand for new speculative warehouse space is keeping up with new supply,” the report stated.
The lease-up rate has been higher in some areas than in others. About half of the spec industrial delivered since 2013 has been in the I-80 and I-55 corridors, but the I-55 Corridor’s lease-up rate is higher: 61.6% compared to 46.9% for the I-80 Corridor. Along the I-88 Corridor, 89.8% of the 3.1 million square feet of spec space built since 2013 has been leased.
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