Nick Siegel, partner at real estate developer Bridge Industrial’s Chicago region, said Chicago’s overall industrial vacancy rate is below 3%. Meanwhile, suburban office submarkets in Chicago had 24.6% direct vacancy at the end of Q3, according to Jones Lang Lasalle Inc. research.
Siegel said Bridge has pursued suburban office sites in Chicago and other parts of the country for industrial redevelopment even prior to Covid-19. But, given new dynamics in both the office and industrial markets since the pandemic, the trend has only been exacerbated.
“I think, right now, industrial land is worth about the equivalent of an existing (Class) B, second-generation office building,” Siegel said.