Chicago Industrial Market Report
Boost in E-Commerce Activity Drives Demand;
Speculative Deliveries Pose Headwinds
Distribution facilities for retailers bolster leasing. As the primary logistics center in the Midwest, Chicago’s e-commerce activity is booming, generating industrial demand in Chicago. More companies, especially in retail trade, are establishing a presence in the metro while many existing businesses are expanding. Leases for more than 1 million square feet by General Motors, Scotts Miracle-Gro, Harbor Freight and Wayfair helped to push net absorption to one of the highest totals in the nation during the past four quarters. The largest move-in expected in 2021 is Ferrara Candy for 1.7 million square feet in a build-to-suit facility that is expected to bring 500 new jobs to DeKalb. Access to major transit routes and intermodal facilities make the West and Southwest suburbs prime targets for companies seeking logistics space.