Chicago Industrial Market Report
Demand Soars Near O'Hare;
Multilevel Warehouses Signal Robust Fundamentals
Supply chain issues supercharge airport area performance. Global logistics issues and local cargo bottlenecks have translated to substantial leasing activity near O'Hare Airport, which saw a 410-basis-point drop in vacancy over the 12-month period ended March. Despite high demand here, the active pipeline barely exceeds 800,000 square feet. Due to limited supply, the vacancy rate entering April was just 2.5 percent. A dramatic increase in warehouse and distribution center construction appears warranted, as frenetic pre-leasing activity has extended to projects in the proposal stage . Additionally, high demand is spilling over to suburban submarkets that offer proximity to the airport.