Industrial Market Should Weather Slowdown, Cushman & Wakefield Says

CHICAGO-The market’s diversity will help the industrial sector weather the current economic slowdown, says international real estate services firm Cushman & Wakefield. Meanwhile, industrial users and developers will continue to look to “new frontiers” beyond suburbia because of a shortage of land and state-of-the-art product closer to the city.

“Clearly, a slowdown will affect the market but it will not have as big of an impact in Chicago as it will in other areas of the country due to Chicago’s diverse business climate,” says Christopher Porter, a director in Cushman & Wakefield’s industrial technology group. “The people who are going to survive and thrive-—whether they are brokers, developers or investors—-are those who have remained focused on mastering the basics of their discipline within our industry and who were financially prudent.”

Despite a 10% jump in asking rent in southwest suburban Will County, rents there still are the cheapest in the area at an average of $3.95 per sf, according to Cushman & Wakefield. The suburban submarkets should remain attractive in spite of an economic downtown, Porter says.