2019 Set To Be A Strong Year for Chicago Industrial

David Freidland

All signs point to a robust year ahead for the Chicago industrial market according to Cushman & Wakefield’s Head of Midwest Industrial David Freidland. Vacancy rates have decreased from 6.8% this time last year to 5.5% at the end of Q4 2018. With the lack of space comes increased rental rates. In Q4 2017 rental rates averaged $5.08 per square foot, while Q4 2018 rental rates increased to $5.45 per square foot. Add to this a low unemployment rate – 4% in Chicago – and the ever increasing ecommerce sector, and Chicago industrial is set for another banner year.

GloebSt.com caught up with Freidland to get his thoughts on the market, the headwinds to watch, and his thoughts on speculative development.

GlobeSt.com: What’s your view of the overall Chicago industrial market as we enter 2019?

Freidland: We think 2019 is going to remain strong and be somewhat the same blueprint as 2018, which was a fantastic year. Our radar is up for 2020. The industrial pipeline is incredibly strong and we have not seen anything to slow that down.