Colliers International reports that Chicago's big-box vacancy rate, despite strong demand, rose to 8.62% in the second quarter.

CHICAGO—Strong demand could not totally make up for the seven speculative, mostly vacant big-box projects delivered in the second quarter in the Chicago region, according to a report released by Colliers International.

Demand for big-box properties yielded a positive net absorption of approximately 3.1 million square feet, according to Colliers VP | Chicago Craig Hurvitz. However, despite strong leasing interest, the big box vacancy rate rose nine basis points in the second quarter to 8.62%. The seven new spec buildings were delivered 78% vacant, adding 2.6 million square feet of new vacant space to the big box market. Eight big box projects totaling 3.6 million square feet were completed during the second quarter of 2019, seven of which were developed on spec, these. Colliers International report states.

The new construction pipeline in the Chicago area is impressive. A total of 27 buildings totaling 13.8 million square feet are now under construction. Eleven of these projects are greater than 500,000 square feet, which Hurvitz says is indicative of large-footprint users returning to the Chicago market.