The Chicagoland industrial market finished strong in 2018, but will it live up to the same success in 2019? The market is slightly overbuilt, but that is not preventing companies from taking advantage of the Chicagoland area. As the Midwest hub, the market is expected to perform well and hopefully record another great year in the books.
Justin Fierz, principal at Midwest Industrial Funds, was quoted at the Chicago Commercial Real Estate conference last week stating, “Right now, big bulk in the Joliet area is overbuilt. There is more supply than demand. It’s a similar situation in I-55 with a lot of options in the 300,000 SF range” (REJournals). However, this will not cause the industrial market to suffer. With an abundance of buildings available, buyers are interested in the opportunities of newly built spaces as well as existing options. The O’Hare market remains steady with high demand according to Bisnow’s article, “…even though new options are opening up, some growing distribution firms are willing to lease up second-generation space.”
In order to take full advantage of the industrial market, experts suggest offering truck parking, if the opportunity is available. Combining this with an available warehouse will only put that property one step ahead of competitors.
A continuing factor impacting the industrial market is the steady growth of e-commerce. The availability of distribution centers and last-mile warehouses give companies the chance to improve shipping methods and house more products.
According to REJournals, a trend on the rise expected to impact the Chicago metro industrial market, is the need for cold-storage facilities. With online grocery delivery services emerging over the past few years, this sector could have a great impact on the market.
The Chicagoland industrial market has earned its title as the hub in the Midwest for multiple factors including, availability of properties, development, accessibility to numerous transportation options; rail, air, and ground. Don’t be surprised if the industrial market pulls off another successful year in the Chicagoland area in 2019.