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Market Report

Chicago Industrial Market Report

4Q 2021

Industrial Leasing Shows No Sign of Slowing in the Windy City;
Construction Remains Elevated

Demand reaching record heights. Since the start of 2021, tenants absorbed nearly 13.8 million square feet in the metro, the largest first-half leasing total since 2006. As a result, vacancy contracted 50 basis points during that span, placing the rate below Chicago’s pre-pandemic level. Demand for industrial space was spread across the region, with nearly all submarkets recording positive absorption in the first half. Both new and existing tenants have been active in the market. Lion Electric recently agreed to open its first U.S. manufacturing facility in Joliet, leasing over 900,000 square feet. Meanwhile, Amazon expanded its industrial footprint in the metro by 2.7 million square feet over the past four quarters. Leasing momentum is expected to continue through the second half with net absorption projected to reach a two-decade high by year-end. 
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