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 2 - 2018 - The Interstate 80-39 Corridor continues to be a powerhouse submarket in the surging Chicago industrial market According to Colliers International’s research, Chicago's industrial market recorded 8.6 million square feet of new leasing activity (new leases and lease expansions) during the second quarter of 2018, the greatest quarterly total since 2015. Following a period of weaker leasing activity and few big-box leases over 300,000 square feet in 2017, activity has ramped up again. Six leases greater than 300,000 square feet were signed during the second quarter of 2018 alone.
As a result, the industrial vacancy rate decreased by an impressive 23 basis points between April and June to 6.44 percent, the lowest rate recorded since 2001. Net absorption during the second quarter of 2018 totaled 6.1 million square feet, bringing the tally for the first half of the year to 10.6 million square feet. While this is above the 9.9 million square feet of net absorption recorded during the first half of 2017, it remains below the 14.3 million square feet measured during the first half of 2016.
The vacancy rate in the I-80 Joliet Corridor increased by 188 basis points to 10.08 percent during the second quarter of 2018, the highest rate recorded in the submarket in four years. The catalyst behind this jump was the completion of two vacant speculative development projects totaling 1.6 million square feet. The largest was a 1.2-million-square-foot building developed by The Opus Group known as Rock Creek Logistics Center in Joliet. Over the past four years, net absorption has averaged 1.2 million square feet per quarter in the I-80 Joliet Corridor. This steady demand will eventually cause the vacancy rate to decrease if users begin to lease some of the nine available spaces greater than 500,000 square feet. Additional speculative development will slow the improvement to the submarket's vacancy rate.
Published Updates on the regional real estate market are provided below: