Q1 2023 Chicago Industrial Market OutlookBrown Commercial Group
Industrial Market Outlook Q1 2023
Low Vacancy Rates Impact Deal Flow
Despite a challenging economic climate, the Chicago industrial market continues to show resilience, with strong tenant demand and low vacancy rates characterizing the market. Landlords remain in the driver’s seat as tenants search the market for space, particularly in the 100K SF and under category. Tenants are advised to start early, have financing in place and be ready to move forward quickly as space becomes available.
Among the trends we’re seeing are:
- Limited supply/strong demand. A lack of supply across the Chicago industrial market is still impacting space decisions. Tenants should be prepared with financing in hand and be ready to commit quickly.
- Rental rates rising. Rates continue to climb in the near term due to the low vacancy and other factors.
- New construction catching up. Construction starts have been slow to material shortages and higher costs, but are starting to catch up.
- Sales have slowed due to rising capital costs and a lack of inventory. There is plenty of capital waiting to invest in industrial when the economic climate moderates.
- Cash is king. Some buyers are using cash to work around the tighter lending environment.
For personalized advice on navigating today’s industrial market, contact Dan Brown.
Brown Commercial Group is a boutique, full-service commercial real estate firm specializing in the marketing, disposition and acquisition of industrial, office and investment grade real estate in the Chicago metropolitan area. Our experienced professionals have built numerous relationships while gaining a thorough understanding of the intricacies needed to negotiate and secure the most timely and favorable results for all of our clients. We are big enough to get the job done but small enough to care about each individual client. When you hire Brown Commercial Group our entire staff becomes your team all the way up to the firm’s President.