Every member of the population is feeling the growth of e-commerce in our lives. This rapidly accelerating trend increases demand for supply chain (industrial) real estate. Many of our favorite retail stores are being replaced by warehouse and distribution. Large and small industrial buildings are required for products to be manufactured, tested, gathered, assembled, packaged and often delivered by a truck or van.
An anticipated $900 billion increase in online sales over the next half decade will translate to the need for more than one billion additional square feet of industrial real estate nationwide by 2025.
According to statistics published by Colliers International’s research team, the Chicago area’s industrial market set a new leasing record of 15.3 million square feet during the 1st quarter of 2020, just prior to the economy being roiled by the COVID-19. We have confirmed with reliable market sources that the industrial vacancy rate is down to 6.16%, one of the lowest rates since 2001.
“Chicago’s centralized location is, and will continue to be, the hub of the U.S. supply chain for freight transportation via trucking, air and rail. ”
— Joel Friedland
The expansive Chicago metropolitan area, home to over 20,000 industrial property occupants exceeding 1.2 billion square feet in aggregate, is one of the top industrial markets in the nation.
The COVID-19 health crisis, economic trends, and instant technological communication are changing our jobs and how we and our families live—making industrial real estate a prudent investment opportunity.