Middle Market Digest-The Midwest

BY THE NUMBERS

CHICAGO—The Chicago industrial market continues to expand. Developers delivered over 18.4 million square feet to the market in 2016 alone, according to a new report from Transwestern. An additional 10.8 million square feet has been delivered in the first half of 2017. Since 2015, total inventory has risen 2.73%, with some of the inventory addition negated by destructions of older functionally obsolete buildings. Furthermore, in the second quarter, there is more than 17.5 million square feet of inventory under construction. And vacancy remains tight at 6.2% overall. Total net absorption was positive in the second quarter with more than 2.7 million square feet occupied.  Vacancy, however, did tip up from 6.1%, last quarter, due to new constructions that delivered with the majority of the buildings not 100% occupied.