Middle Market Digest-The Midwest

BY THE NUMBERS

CHICAGO—Demand for industrial space remains strong across the Chicago market, with Lake County showing a 195% increase in absorption from year-end 2015 to year-end 2016, according to Avison Young research. “The outlook for 2017 is promising with several large users expected to close in various submarkets throughout the first half of 2017,” the firm says. Overall, industrial users absorbed 19.4 million square feet in Chicago in 2016. Lake County users absorbed 1.5 million square feet throughout 2016. E-commerce giant Amazon inked a 626,848 square foot lease in Lake County’s newly created 1750 Bridge Dr. as well as 402,860 square feet at 4200 Ferry Rd. within the I-55 Corridor. Amazon also made major moves throughout the market signing three of the top five leases during the fourth quarter, the largest being a 954,720 square foot built-to-suit at 1 Duke Pkwy. in Joliet. As infill development continues to gain traction, the
South Chicago submarket experienced increased demand. Net absorption in that market jumped 34% year-over-year to 1.4 million square feet. The I-55 Corridor remained a user favorite, with strong leasing driving net absorption up 32% year-over-year to 2.6 million square feet. Leasing activity across the market remained strong throughout the fourth quarter of 2016, bringing
the total square feet transacted to 47 million square feet.