Increased political gridlock, a contraction in federal spending, and uncertainties over potential trade wars continue to worry wall street. In spite of fears from Washington, the Illinois commercial real estate market continues to firm up in 2019.
A vibrant industrial market is driving growth in the Illinois commercial real estate industry. Fueled by robust economic development and a booming need for spaces tailored to e-commerce, industrial real estate vacancies are at their lowest in 17 years. Particularly for prospects looking for warehouse space, the marketplace is increasingly tight. Overall, developers are meeting the pace of demand in Illinois but not overbuilding.
Still, as corporate confidence remains high, many companies continue to plan for expansion. As growth-oriented buildings are highly sought-after, premium industrial space continues to be in high demand. As
In comparison to the industrial marketplace, in Chicago’s central business district, office developers are pushing the boundaries of what the market can absorb. Even so, office space vacancy rates in the Chicago area remain low at 11.8 percent. Luckily for landlords in the Chicago metro area, despite missing out on Amazon’s HQ2, tech company hiring is increasing demand for office space. Still, availability in suburban and urban office markets significantly outpaces the industrial sector.
Following the headlines, some in the industry continue to preach doom and gloom in the suburban office market. However, both suburban and urban office spaces saw significant leasing activity last year. In the third quarter alone, suburban landlords leased 1.6 million square feet in compassion to 2 million in Downton Chicago. Correspondingly, much of the mutual growth in the urban and suburban office market came as a consequence of space with a desirable location, updated building amenities, and transportation options. Accordingly, expect declining vacancy in areas with premium amenities, excellent location, and transportation access.
In conclusion, although there are some negative indicators, the office and industrial sector continues to firm up. Therefore, expect