The demand for distribution centers and warehouses in Chicago continues to skyrocket. Builders are working around the clock to try and keep pace with the booming demand. According to CommercialEdge, sales reached $1.52 billion within just the first half of 2021. That figure is likely to surpass the $2.13 billion in sales recorded the previous year.
Industrial Real Estate Demand in Chicago
A Colliers International report shows that as of November 2021, an estimated 19.5 million square feet of new industrial real estate properties had sprouted in Chicago. The strong demand saw Chicago record close to 150 industrial real estate transactions in just six months. These properties are going for an average of $67 per square foot.
Chicago might have dominated with the most industrial real estate transactions, but Los Angeles topped warehouse sales, with recorded sales of $2 billion. New Jersey had the highest-priced industrial real estate where properties had a $200 per square foot price tag.
Landmark Deals
The biggest industrial real estate deal came with the purchase of a $130 million industrial real estate lot in Wilmington, Illinois. This deal was secured by the Chicago-based Silver Creek Development Agency.
The second-largest deal involved the lease of a two million square foot lot by Michelin North America. The properties are situated some 60 miles from Downtown Chicago.
The Explanation for the Strong demand for Industrial Real Estate in Chicago
The pandemic has turned into a blessing for last-mile distribution centers. E-commerce has experienced a boom in the past year. More goods are getting delivered to consumers than at any other time in recent history. Another possible explanation for this demand is that Chicago conveniently connects all the major highways leading to every part of the country.
Chicago’s Future
Moving forward, there seems to be no slowing down of this demand. The E-commerce boom will continue to fuel a need for bigger warehouses and industrial complexes. The strategic positioning of Chicago will continue to attract more shipping and storage companies.
Buying Industrial Real Estate
Securing a lucrative industrial real estate leasing or acquisition deal is a grueling endeavor. A real estate attorney is instrumental in sale negotiation, contract review, purchase agreement explanation, and closing facilitation. The lawyer has a keen eye at spotting questionable contract terms and recognizing potential pitfalls. Overall, a real estate attorney can streamline the process of leasing, buying, or selling industrial real estate.
