Brown covers O’Hare industrial
Sept. 13, 2023 — The O’Hare industrial market continually ranks as a top Chicago submarket due to its connection to O’Hare International Airport, which is ranked as the busiest airport in North America for cargo traffic. The O’Hare industrial submarket recorded a significant uptick in freight traffic year-over-year, increasing by more than 9% from 21Q4 to 22Q4, according to the most recent data from CoStar. This is particularly impressive considering 2023’s challenges with supply chain bottlenecks, labor shortages, and inflationary pressures.
Strong fundamentals shape O’Hare industrial
The O’Hare industrial submarket recorded 860,000 SF of net absorption over the past year, primarily from the logistics sector, which accounted for 600,000 SF of the total. Ongoing construction activity and projects starts dramatically dropped during the first quarter of 2023 due to higher interest rates and other economic headwinds and hasn’t recovered much since. Approximately 190,000 SF is currently under construction in this submarket. Vacancy remains a historically low 3.3%, but did inch up by approximately 0.8% in the second quarter.
Here’s a recap of recent O’Hare industrial activity from the Brown team.
46,500SF 2450 Lunt Ave., Elk Grove Village (as noted in this REJournals story)
6,700 SF 150 Crossen Ave., Elk Grove Village (Set a record PSF for EGV)
21,400 SF 605 Bonnie Lane, Elk Grove Village
7,500 SF 201 Eastern Ave., Bensenville
12,075 SF 1655-1665 Jarvis, Elk Grove Village
3,080 SF 420 Bonnie Lane, Elk Grove Village
