CHICAGO—Chicago's industrial market has put together some solidquarters since the recovery began, but the second quarter of thisyear saw the most positive absorption in years, according to astudy just released by NAI Hiffman. Net absorptiontotaled 5,688,263-square-feet between April and June, the highesttally since mid-2010. Furthermore, the overall vacancy rateimproved by 18 bps during the quarter, decreasing to 8.09%, whichNAI Hiffman terms “a rate that suggests a healthy, active marketand encourages confidence in the market for landlords, investors,and developers.”

In addition to the healthy absorption, rental rates increasedalong with property sales and new development. In fact, developershave more than 11.4-million-square-feet under construction anddelivered more than 4-million-square-feet of new product during thefirst half of the year.

“Chicago's real estate markets – both in the industrial andoffice sectors – have crested a ridge,” says John R.Picchiotti, chief operating officer, brokerage. “We'veseen several consecutive quarters of positive absorption; afterseveral years of struggle, we're coasting and picking upspeed.”