Monday, July 28, 2008

Chicago Area Industrial vacancy highest since 1994

Crain's Chicago Business reports:
The vacancy rate for industrial real estate in the Chicago area climbed to its highest level in 14 years in the second quarter as the ailing U.S. economy has companies curtailing investments — leaving more warehouses and factories here empty.

The vacancy rate pushed higher for the third straight quarter to 9.38%, up from 9.11% in the first quarter and 8.58% in the second quarter last year, according to a new report by Colliers Bennett & Kahnweiler Inc., a Rosemont-based commercial real estate brokerage.

The last time the vacancy rate was higher was the second quarter of 1994, when it stood at 9.88%.

Net absorption, a demand gauge that measures the amount of leased and occupied space compared with the prior period, was -1.7 million square feet. It was the second consecutive quarter of negative net absorption, the first time that’s happened since 2002, according to CBK data.