Colliers International says industrial construction in the Chicago region has increased dramatically compared to a year ago. The steadily climbing percentage of speculative development that has been leased indicates that demand is keeping up with supply, the broker says.
As the first quarter ended, about 16.9 million square feet of projects were going vertical across the metro area, Connect Chicago reported, quoting Colliers. These numbers are more than twice the 7.2 million square feet of construction underway a year ago.
Colliers says two-thirds of the 54 new industrial projects are being built on spec, with most delivering between April and September.
“This will result in nearly 12 million square feet of new speculative space being added to the market, likely causing a temporary rise in the market’s vacancy rate,” Colliers says.
As well, eight million square feet of new development is expected to begin in the first and second quarters of this yearColliers says.