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Market Report

Chicago Industrial Market Report

2024 Investment Forecast

Western Suburbs Headline Metrowide Performance,
Prompting Additional Investment Activity

Historically tight conditions preserved in western suburbs. Following record-low vacancy across the Chicago metro in 2022, the marketwide measure rose last year. This trend is anticipated to carry forward through 2024 amid easing demand for warehousing space, as a result of a softer economic outlook. The western suburbs, however, have continued to exhibit strengthening demand. Last year, space absorbed in Western DuPage County and Aurora was largely accounted for by logistics firms. Farther west, Amazon’s new fulfillment facility and Meta’s data center collectively accounted for 1.6 million square feet of space leased in DeKalb. Meta’s move-in marked the first of the company’s three new facilities in the area, the remaining two of which will be occupied by early 2025. Considerable corporate commitment here extends beyond the e-commerce and tech sectors, as Kraft Heinz will take up a 775,000-square-foot distribution center this fall, helping maintain strong fundamentals across the submarket. Entering 2024, vacancy here was below 3 percent, while double-digit rent growth was recorded for the second time in the last three years.

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