Chicago’s industrial market is hot, primarily due to the exponential growth of e-commerce. Over 28 million SF of space has been filled over the past year alone, a historical high. Market rents increased nearly 6% year over year. Average industrial values in Chicago rose to $80/SF, an annual increase of more than 6%.
The apartment market is surging in nearly every measure. Rents are rising in almost every major U.S. city. Vacancy rates are less than 5%. One-bedroom rents are up 7.5% since the start of 2021. And deal volume is up, with the total multifamily volume in the first half of 2021 almost matching the record-high first half of 2019, and surpassing the total amount of trades that closed in 2020.
Chicagoland’s office market remains under pressure, with a vacancy rate of 14.4% (10-year high). That said, quarterly office leasing activity has surpassed 3 million square feet for the first time since the pandemic. While below the pre-pandemic average, this milestone marks a considerable thaw in the market. Office demand will remain muted over the next few quarters but should recover in early 2022.