Fears of a possible recession or continual trade wars didn’t stop the Chicago region’s industrial users from increasing their leasing activity. Tenants leased another 8.7M SF in the second quarter, a 20% increase from the previous quarter, according to Avison Young researchers.
That is much slower than last year, when tenants leased on average 12M SF per quarter. Still, rents keep increasing, and institutional capital continues pouring in to finance new construction.
Developers now have 19.3M SF underway, more than double the amount in the spring of 2018, with more than 70% of the current pipeline being built on a speculative basis.