Real Estate Market Information
North Central Illinois is one of America's Top 40 Micropolitan areas for development projects and expansions (Site Selection Magazine). With 65 Available Full-Service Industrial Sites between 15 and 853 acres in size, plus proven industrial success, this is a proven Profit Center for Growing Business in the state of Illinois. Opportunities abound for real estate investors in the industrial, technology, office, agri-business, and retail sectors.
Regional Industrial Market Report
Q 1 - 2019 - The Interstate 80-39 Corridor continues to be a powerhouse submarket in the surging Chicago industrial market According to Cushman & Wakefield Research, The Chicago industrial market remained active throughout Q1 2019. New leasing activity totaled 6.4 million square feet (msf), 9.8% lower than the total reported last year at this time. The average lease size was 70,094 squarefeet(sf). The Interstate 55 Corridor, Southeast Wisconsin, and Interstate 80 Corridor submarkets recorded the most new leasing activity.
Overall net absorption slowed from what was posted a year ago, with 2.6 msf of space absorbed during Q1. This surge in activity drove overall vacancy down by 130 bps from Q1 2018 to 5.5%. In addition, the asking weighted average overall net rental rate continued to increase to $5.48 per square foot (psf), marking the ninth consecutive quarter of rent growth.
The market continued to record increased construction activity, with nearly 4.8 msf of product delivered during the first quarter. Over 4.0 msf was built on a speculative (spec) basis and remains largely vacant. There was an additional 15.8 msf under construction, of which 74.5% is being built on a spec basis.
The Chicago industrial market is poised for continued growth throughout the remainder of 2019. Construction activity remains strong as a multitude of projects are expected to break ground this year, especially within infill submarkets that are closer to both labor and consumers.
Published Updates on the regional real estate market are provided below: