Q3 Industrial Property Improving

Let's start with a 8.3% vacancy rate, which is a great number on a national basis and on the other side occupancy rates are up by 1.6% on a year over year basis. The industrial market is fast approaching the pre recession levels overall and in some factors has already surpassed it.  Even better is the fact that momentum is still positive with 70% of national markets showing increases, indicating a widespread improvement.  Chicago rents are up 3.2% over last year which is a good sign for owners and owners are not as generous on the lease give aways that they once were.  While improving, rates are one of the areas that have not yet reached their pre recession highs.

Buildings in the 100K SQ FT and below that were hit hard in the recession are showing a remarkable come back now and are the fastest growing segment of the industrial market.  Even the CoStar category of industrial building- old and small (40KSF and below) are finally showing improvement.