First Quarter 2013 Market Peek
NAI Hiffman is pleased to present its First Quarter 2013 Market Peek, a sneak peek at the market statistics for the Chicago Metropolitan office and industrial real estate markets.
The suburban office market witnessed more absorption than the downtown market for the fourth quarter in a row. The suburban vacancy rate decreased to 20.3% during the first quarter, as 370,000 SF was absorbed. Downtown, 244,000 SF of vacant space was absorbed, dropping the vacancy rate to 13.3%. The Northwest Suburban submarket, hardest hit by the downturn, has witnessed the most leasing activity for the past three quarters, absorbing an impressive 277,491 SF during the first quarter.
One of the largest new leases signed during the first quarter involved Association Management Center leasing 47,129 SF at O’Hare Plaza. The Bank of America building, located at 231 S LaSalle St in the Central Loop, sold for $345 million, or about $310 PSF to a team of New York investors.
The Pace of Absorption Picks Up in the Industrial Market
More than 4.4 million Sf of vacant space was absorbed through new leases, expansions and user sales during the first quarter, pushing the vacancy rate down 20 basis points to 9.0%, a new 5-year low. Since the recovery began, nearly 38 million SF has been absorbed. Construction activity continues to increase, as 2.7 million SF of new product was completed during the first quarter and more than 3.9 million SF is currently underway. Additional build-to-suit and speculative facilities are expected to break ground during the second quarter.
The largest ongoing construction project is a 1.6 million SF distribution facility for Home Depot being built in Joliet’s CenterPoint Intermodal Center.
The largest new lease signed during the first quarter involved UTI Panasonic leasing the 592,539 SF dsitribution building at 800 Bilter Road in Aurora.
For further information regarding the content of this market peek, please contact:
Craig Hurvitz | Director of Statistics and Market Information
630 693 0645
If you are interested in attending a custom market overview presentation, please contact:
John Picchiotti | Chief Operating Officer
630 691 0608