Third quarter witnesses nearly double Chicago industrial demand
The centralized location of Chicago is continuously providing it an edge to grow its industrial market. The superior railway and highway access are also playing a crucial role in this regard. The tremendous growth in e-commerce sales has been noted since the beginning of the coronavirus pandemic. The retailers are looking for delivering products to the customers in a quick time and cost-effective manner.
The logistics spaces in the industrial market of Chicago has shown an experiential growth due to the changing landscape of e-commerce. According to the recent stats, approximately 9.7 million square feet of leasing activity occurred along the outer rims of the Chicago market during the third quarter. It is an increase of 17% as compared to the previous quarter.
The industrial demand of Chicago has nearly doubled in the third quarter as compared to the previous quarter. It has reached a 3-year high level of 20.5 million square feet. However, sales declined in the third quarter. The officials recorded the lowest quarterly sales volume of just under $300 million since 2013.
According to the experts, the decline in sales occurred due to the increase in uncertainty. Moreover, funding in the market is expensive and scarce. However, Chicago has geographic and infrastructure advantages. They are playing a key role in making Chicago an important player as a strong industrial market.
The US is looking to reorient its logistical network to meet the rising demand for e-commerce. Chicago has several advantages in this regard in the form of its strong railway and highway access. The increase in the leasing activity driven by the logistics and e-commerce tenants is a prominent sign in terms of Chicago’s industrial market growth. Despite a decline in sales, Chicago will remain a key player due to its geography and infrastructure superiority.
