Here’s are the latest lease, sales, and construction stats for Chicago industrial real estate market in Q3 2023.

Chicago industrial real estate market expert insight:

While other product types appear to be cooling off and daily discussions remain evident of a looming recession, the industrial market continues to maintain strength across the board.

Vacancy levels remain at historical lows across the US, industrial rents are at premiums and inventory remains scarce in various markets especially for users seeking acquisitions where institutional landlords acquire anything they can get their hands on.”

Mike Hawryluk, Managing Principal, ICG CRE

Chicago Industrial Real Estate Statistics & Highlights: Leases, Sales, and Under Construction Assets – Q3 2023

We’ve broken the Chicago industrial real estate market summary into 3 main categories: leasessales, and properties under construction in the area.

Chicago Industrial Real Estate Report Q3 2023 - ICG CRE

Chicago Industrial Real Estate Lease Stats – Q3 2023

Vacancy: 4.5% (+0.4% from Q2 2023 at 4.1%)
Absorption: -2,082,983 (-2,611,871 compared to Q1 2023 at 528,888)
Asking rate PSF: $9.30 (+$0.13 compared to Q2 2023 at $9.17)

Chicago Industrial Leasing Stats – Q3 2023 (Past 12 Months)

12 Month Deliveries in SF: 31.1M
12 Month Net Absorption in SF:
22.1M
Vacancy Rate:
4.5%
12 Month Rental Growth: 7.5%

Top Chicago Industrial Space Leases Signed (Past 12 Months)

1. 101 W Compass Blvd
Submarket:
Joliet Area
Tenant: 
Target
Size: 
1,218,120

2. 2250 Berens Ct
Submarket:
Joliet Area
Tenant: Unilever
Size: 1,159,200 SF

3. 7450 McCormick Blvd
Submarket: North Cook
Tenant:
Tenneco, Inc
Size: 1,052,637 SF

4. 5000 183rd St
Submarket: Near South Cook
Tenant:
Solo Cup
Size: 1,033,450 SF

5. 555 S Pinnacle Dr
Submarket: South I-55 Corridor
Tenant:
Solo Cup
Size: 1,033,450 SF

 

Chicago Industrial Real Estate Sales Stats – Q3 2023

During the last 12 months there have been 1,044 sales comparables in Chicago’s industrial market with an average cap rate of 7.7%. The average price per square foot for these sales was $102, and the average vacancy at the time of the sale was 5.6%.

Sales Comparables: 1,044
Average Cap Rate:
7.7%
Average Price/ SF:
$102
Average Vacancy at Sale: 5.6%

Top Chicago Industrial Sales (Past 12 Months)

Top Transaction Highlight over the last 12 months took place in Q2 2023: CH2 Data Center @ $176,458,584 ($808 / sq ft)

1. CH2 Data Center (2299 Busse Rd)
Price: 
$176,458,584
Size:
336,000 SF
Price/ SF: 
$808
Cap Rate:
Not Listed
Vacancy:
0%

2. CH1 Data Center (2299 Busse Rd)
Price: 
$154,270,236
Size:
485,000 SF
Price/ SF: 
$489
Cap Rate:
Not Listed
Vacancy:
0%

3. CH3 Data Center (1400 Devon Ave)
Price: $152,221,180
Size: 305,000 SF
Price/ SF: $768
Cap Rate: Not Listed
Vacancy: 0%

4. I-88 Gateway Logistics Center (1200 Orchard Gtwy)
Price: $55,500,000
Size: 604,565
Price/ SF: $92
Cap Rate: Not Listed
Vacancy: 0%

5. 7450 McCormick Blvd
Price: $53,294,000
Size: 1,052,637 SF
Price/ SF: $51
Cap Rate: Not Listed
Vacancy: 0%

 

Chicago Industrial Assets Under Construction Stats (Past 12 Months)

There are currently 88 industrial properties under construction in Chicagoland. These assets will add nearly 30M square feet of new product to the market. These properties represents 2.1% of the total industrial real estate inventory in the area, and just over 30% of the total industrial space under development is pre-leased.

Properties Currently Under Construction: 88
Total Size:
27,788,805
Percent of Inventory:
2.1%
Pre-leased: 31.3%

Chicago Industrial Properties Under Construction

Here are the top-5 largest industrial projects currently under development. The list is led by a new Facebook Data Center that will have 2.4M square feet of space.

1. Minooka Distribution Center (11075 McLinden Rd)
Size: 1,500,800 SF
Completion Date: Q4 2023
Developer/ Owner: Molto Properties / Walmart, Inc
Stories: 1

2. #2 (9850 Mississippi St)
Size: 1,380,000
Completion Date: Q4 2023
Developer/ Owner: Not Listed / Nancy Sanders
Stories: 1

3. 1237 W Division St
Size: 1,184,800 SF
Completion Date: Q3 2024
Developer/ Owner: Not Listed / Logistics Property Company, LLC
Stories: 5

4. Third Coast Intermodal Center (102 W Compass Blvd)
Size: 1,056,353 SF
Completion Date: Q4 2023
Developer/ Owner: NorthPoint Development / Not Listed
Stories: 1

5. Third Coast Intermodal Center (100 W Compass Blvd)
Size: 1,010,880 SF
Completion Date: Q4 2023
Developer/ Owner: NorthPoint Development / Not Listed
Stories: 1

 

If you’re interested in finding out more about Chicago’s commercial real estate market and keeping up to date on what’s going on, check out our Chicago CRE News page for the latest highlights and transactions.

 

Sources of Data: ICG CRE & CoStar