"The Metro Chicago industrial market will remain weak through much of 2010 as limited demand persists," the report states. "Stronger economic conditions and improving consumer sentiment in the latter stages of 2010 likely will boost demand for goods and result in stronger market conditions in 2011."

Vacancy jumped to 11.8% by the end of the year, slightly increasing from 11.2% in the third quarter and 9.7% at the end of 2008. Leasing wasn't the only significant decline in 2009. Industrial investment sales totaled $312 million for the year, a decline from $1.2 billion in 2008. Sale prices averaged $49 per square foot.

The Chicago industrial market saw a negative 5.6 million square feet of net absorption during the fourth quarter, while negative net absorption for the entire year was 15.9 million square feet. This total is a significant difference from the positive six million square feet of absorption during 2008.

This was due in part to companies disposing of warehouse and manufacturing space as the economy weakened. Beyond net absorption, the market saw 6.5 million square feet of sublease space enter the market during 2009; this is an increase from 6.1 million square feet in 2008. Sublease space totals 0.6% of the market's current inventory.

Additionally 346,000 square feet of industrial space currently under construction, although this total is far less than the 1.7 million square feet under construction in Q3 and five million square feet at the end of 2008.

In total industrial deliveries dropped significantly during 2009; with 8.3 million square feet delivered in 2009. In comparison to 18.7 million square feet delivered in 2008.

Rental rates decreased 3.2% in 2008 and another 6% in 2009. The average rental rate now sits at $4.76 per square foot, triple net. Rates are expected to further decline through mid 2010, when market conditions are expected to stabilize.