Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Fueled by E-Commerce, Chicago Industrial Market Still Poised for Growth at Mid-Year

CHICAGO, July 12, 2019 – Chicago’s industrial market continued to gain momentum in the first half of 2019, with a record-low vacancy rate, historically strong rental rates and a robust construction pipeline, according to the newly released “Chicago Q2 Industrial Market Snapshot” from Cushman & Wakefield, the top industrial agency leasing firm in Chicago over the past three years, based on data from CoStar Analytics.

“Coming off a huge year in 2018 for new leasing activity and building completions, we were cautiously optimistic about 2019, which has already exceeded expectations at mid-year,” said David Friedland, executive director and Chicago Industrial Group leader for Cushman & Wakefield. “E-commerce, logistics, food and beverage and other industries continue to drive development, sales and leasing activity.”

The local vacancy rate dropped to a record 19-year low of 5.0% in the second quarter, down from 5.5% in the first quarter and 6.3% a year earlier, according to Cushman & Wakefield research. Meanwhile, the average asking net rent of $5.44 per square foot, while down slightly from the first quarter, remained above 2017 and 2018 levels. Net absorption totaled 2.8 million square feet (MSF) in the second quarter, the 34th consecutive quarter this key indicator of demand has remained positive.

New industrial developments continue to break ground in 2019, with over 7.5 MSF delivered through the second quarter, up 36.2% year-over-year. Much of the completed inventory was built on a speculative basis, with a current vacancy rate of 79.4%. Cushman & Wakefield projects new supply to total 19.8 MSF for all of 2019, above the 11.6 MSF completed in 2018.

“The seemingly insatiable demand for industrial space is being driven in large part by the broader shift in supply chains, with a growing focus on last-mile logistics, particularly in centrally located population centers like Chicago,” said Friedland. “Several large transactions are expected to close here over the next two quarters, which will help propel the market into 2020. Despite all the activity, a lot of capital remains on the sidelines – some of it trading in from other sectors – that may lead investors to pursue more opportunistic deals in the coming months.”

Chicago-area leasing activity totaled 13.6 MSF in the second quarter, with the I-55 Corridor, Southern Fox Valley and Southeast Wisconsin submarkets accounting for nearly 43% of the transactions. Contributing to the second-quarter total were a number of deals brokered by Cushman & Wakefield, including:

  • Industrial coworking space provider CubeWork executed a long-term, 202,259-square-foot lease at 7080 N. McCormick Blvd. in Lincolnwood, Ill. Cushman & Wakefield represented the property’s owner in the transaction, one of the largest to be completed in the Edens Corridor in the past 10 years.
  • LTD Commodities executed a long-term, 694,367-square-foot lease renewal at 1000 Bitter Road in Aurora, Ill. Cushman & Wakefield represented the premier catalog and online merchandisers on their new lease. 

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit or follow @CushWake on Twitter.


Unilever (image)
Unilever • Consumer Goods
New Unilever North America HQ: Testimony to Brand Strength and Our Cross-Service Platform
Learn More
NVI (image)
National Vision, Inc. • Retail
Proud Partners in National Vision's Success Story
Learn More


Atlanta Legal
Article • Legal

Three Prominent Legal Sector Trends in Atlanta

What three trends are impacting legal occupiers in Atlanta? 
Sam Hollis Jr. • 11/28/2023
Alternative Assets
Research • Investment / Capital Markets

Unlocking Alternatives: Investing Beyond the Major CRE Asset Types

Investing beyond the major CRE asset types.
Jacob Albers • 11/15/2023
Research • Workplace

Experience per Square Foot Instant Insights

Welcome to our monthly Experience per Square FootTM Insight page. The goal of our Total Workplace Research & Innovation Team is to keep you informed about the latest trends in the dynamic commercial real estate industry. Each month, we will present our own insights and in-depth examination of emerging shifts that can help you make informed real estate decisions.

Ready to talk?

Get in touch and we can help with any additional information you need.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All