Disciplined by Design: Chicago's Industrial Market
Chicago's industrial construction sector is slowing down, but this trend may not be entirely negative. Developers are now approaching projects with caution, carefully balancing financial challenges with the changing needs of tenants.
While there are some things happening around the greater Chicago area, activity is well below the levels we've seen in recent years.
According to Trevor Ryor, Vice President of Industrial at Clayco, the market is shifting towards smaller projects, with a focus on infill sites and buildings less than 100,000 square feet. This adaptation is a response to higher interest rates and limited access to capital.
- Larger build-to-suit deals are progressing slowly with longer lead times.
- Developers are focusing on infill and suburban submarkets with reliable demand.
This disciplined approach could ultimately strengthen the market's long-term resilience.
Author's summary: Chicago's industrial market is slowing, but developers are adapting with caution.