WINGSPAN
  • Home
  • About
    • Leadership Team
    • Vision & Values
    • News
  • Residential
    • Buckingham Place
    • Sixteen|30 Luxury Community
    • Hub13 >
      • Hub 13 Community Page
    • The Hansen
    • Niche at North Hyde Park
  • Mixed Use
    • 20 West Apartments
    • Maple Street Lofts
    • Jade at North Hyde Park
  • Land Development
  • Contact Us

Industrial And CBD Office Were Chicago Standouts In 2018, And Look Great For 2019

1/23/2019

0 Comments

 
Brian Rogal, Bisnow Chicago Want to get a jump-start on upcoming deals? Meet the major Chicago players at one of our upcoming events!
Picture
​The overall fundamentals in Chicago’s office and retail sectors declined in 2018 when compared with 2017, according to Avison Young’s new annual review and 2019 forecast, but both the industrial market and the CBD’s office sector were standouts, and saw significant growth in leasing velocity and construction. The employment picture was also bright last year, which could set the stage for expansion in several sectors in 2019. As of September 2018, employers in the Chicago metropolitan area had added approximately 35,100 jobs year-over-year, Avison Young said. Activity in the metro area’s office market was moderate during 2018, with much of it concentrated within the city’s central business district, which recorded a total of 9.4M SF leased through the first three quarters — compared with 5.6M SF in the suburbs. “Facebook, Google, Pinterest, Salesforce, Career Builder and Madison Capital have all recently announced major expansions in the CBD, which will increase local workforces as well as real estate footprints,” Avison Young said.

​That growth has kept builders active in the CBD, and new developments garnered record-setting rents in 2018. Avison Young projects that downtown will see another 3.4M SF open up this year, 87% of it in the West Loop. The pace of construction will boost the amount of shadow space throughout much of the CBD as tenants sign deals for new spaces. Avison Young also projects that the vacancy rate, which had eased in the past year from 14.1% to 11.8%, will rise to 12.4% in 2019. Chicago’s industrial vacancy rate should keep falling, even as the pace of new construction picks up in 2019. Avison Young said 18M SF of industrial will be added in the next 12 months, much of it on spec, but it forecasts healthy leasing will sink vacancy to 5.9% next year, after hitting 6.3% in 2017.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    ​Chris Coleman, VP of Development at Wingspan, periodically shares his thoughts and observations on property development news. 

    Picture

    Archives

    December 2020
    November 2020
    August 2020
    February 2020
    January 2020
    December 2019
    October 2019
    August 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    September 2017
    August 2017
    August 2014

    Categories

    All

    RSS Feed

Wingspan Development Group

​Illinois Office: 
1001 Feehanville Dr. 
Mount Prospect, IL 60056 
Phone: (847) 394-6200 

Fax: (847) 394-6205 ​

Picture
Wisconsin Office: 
3880 W. Wheelhouse Rd.  
Suite B 
Milwaukee, WI 53208 
Phone: (262) 513-9300 
Fax: (262) 513-9400 ​
Picture
Picture

For inquiries and comments, please contact:

​Christopher Coleman
​
Vice President of Development
Phone: 847.394.6200 | Fax: 847.394.6205 

Submit
Website by Newmedia Design Solutions, Inc.
  • Home
  • About
    • Leadership Team
    • Vision & Values
    • News
  • Residential
    • Buckingham Place
    • Sixteen|30 Luxury Community
    • Hub13 >
      • Hub 13 Community Page
    • The Hansen
    • Niche at North Hyde Park
  • Mixed Use
    • 20 West Apartments
    • Maple Street Lofts
    • Jade at North Hyde Park
  • Land Development
  • Contact Us