Chicago industrial average price per sf holds strong despite slowing activity

• Chicago industrial sales volume surged in 2021, reaching $9.1 billion, with more than 700 properties traded representing more than 103 msf. This increase can largely be attributed to the favorable lending environment with US 10-year treasury rates at an all-time low and an upswing in investor confidence within the industrial sector. Chicago market fundamentals soared from the aftermath of COVID as the market witnessed tremendous demand, low vacancy and strong rental rate growth. Investment activity has since slowed, down nearly 50% in 2023 from the year prior.
   
• Over the past 12 months the O’Hare submarket has been the most active in terms of sales volume with $781.2 million transacting followed by the South I-55 corridor submarket with $439.3 million transacting. Both submarkets have remained very popular to investors and users due to their close access to vital interstates as well as the O’Hare International Airport.
   
• Despite the slowdown in overall investment activity within the Chicago market, the average price per sf of industrial properties has remained steady and is increasing in value. Since 2018, the average price per sf has increased 38%, driven by robust demand, underscoring the overall health of the industrial sector.

June 10, 2024

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