The Chicago industrial market is not seeing any signs of letting up into the next year. This area also includes the Northwest Indiana region; looking at a map you can see why this space is also included. The area is almost a continuous region of the area of Chicago, barring any stateliness and city jurisdiction.
In the Chicago metropolitan area there is around 18 million square feet of industrial development during the last year. This is some of the best seen progress since 2008 and has outpaced anything in the market and there’s no reason to think that this is going to let up anytime soon. The Chicago land area and surrounding designated industrial area is one of the fastest growing areas in all of the country.
Last year was also one of the best years in an entire decade according to a Real Estate forecasting group based out of the Chicago Loop.
In the past year Chicago has not only outperformed itself but also various regions across the United States, shedding any preconceived notions about what Chicago can offer for the industrial industry. Areas like L.A. and the east coast have gotten a lot of coverage but barely compare to what Chicago is putting out now.
Capitalization & Procurement
Venture One just recently purchased one million square feet in Northwest Indiana because of logistics and advantages for being on the border. One of the prime reasons and movers of this entire uptake in real estate is because of online retailers like Amazon and other ecommerce sites.
A new trend is for warehouses to have a small amount of assembly since there are a lot of custom orders, but e-commerce is catching up and seeing a major growth in the industry.
Along with the ecommerce industry, there is still a lot of manufacturing going on in the Southeast parts of Wisconsin, Northwest Indiana and the Chicago Metro area. In terms of a workforce these two states employ the most in terms of having a lot of citizens working in the manufacturing industries. Commodities drive a lot of the economy here and it has the old school manufacturing feel that is needed to fulfill these types of jobs.
Types of Buildings
Many of these industrial buildings being picked up are buildings that aren’t modern and do not require the uptake that many other companies require that includes high tech industrial standards. The companies buying up these buildings are content to buy twenty five year old buildings and repurpose them for what they need.
Along with these older buildings there’s also still room for growth for modern type buildings. One of the examples is a building out in Indianoplis being built in Hobart’s Northwind Crossings and is 160,000 square feet.
The building is almost in the final stages of completion and already has some potential tenants lined up for purchase. There is a lot of land out there that can house these new developments as well as older buildings that can be repurposed and built upon and that is why the Chicago industrial area will continue growing.