C H I C AG O I ND USTR I AL P R O P E R T I E S S E P T E M B E R / O C TO B E R 2 02 4
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Chicago’s warehouse development boom: A look at key players leading the charge By Brandi Smith
Carlow Corporate Center. Photo Courtesy of Northern.
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hicago’s industrial market is experiencing record-breaking warehouse development, fueled by the continued rise of e-commerce, supply chain resilience efforts and the city’s strategic location as a logistics hub. Companies like CenterPoint Properties, Northern Builders and Logistics Property Company are leading the charge, adapting to shifting demand while addressing the need for sustainable growth and specialized facilities. From taking advantage of Chicago’s robust transportation infrastructure to embracing redevelopment and community engagement, these firms are shaping the region’s future as they respond to both short-term market fluctuations and long-term industrial trends.
‘Strategic growth’ with NAI Hiffman Chicago has always been a major distribution hub, said R. Kelly Disser III, Executive Vice President and Principal of NAI Hiffman, citing its extensive transportation infrastructure. “Major interstate highways come through Chicago—I-90, I-80, I-55, I-94, I-65, I-57, and connecting I-294 and I-355,” Disser said. “All Class 1 railroads, east/west railroads intersect in Chicago (CN, UP, BNSF, CP, NS, CSX), we have many intermodal rail yards and the inland ports result in many goods coming through Chicagoland. In addition to all of this, we are the largest Midwestern city by a lot and have close to 10 million residents/consumers in greater Chicagoland. It makes sense for dense distribution based on the demographics and infrastructure.”
As a result, the warehouse market in Chicago is booming and NAI Hiffman is capitalizing on the region's record-breaking development and adapting to changing demand patterns. “We have three excellent quality buildings our team is diligently focusing on leasing, ranging from 450,000 to 600,000 square feet,” Disser said. “Each of these buildings can be leased today at a rate which is less than what the lease rate would be if any of the three buildings were replicated today in the subject submarkets with comparable infrastructure.” Breaking down the market’s current conditions, Disser observed that record-breaking deliveries of distribution centers resulted from a surge in demand during the pandemic. Now he says there appears to be a moderation
and right-sizing as many industries adjust back to a ‘normal’ pace of business. “Those who expanded too rapidly are giving back space or have surplus space; those who were more tempered in their growth immediately coming out of the pandemic now have the opportunity to take market share and are being opportunistic to capitalize on opportunities presented,” Disser said. “These are the types of companies we enjoy working with for strategic growth.” CenterPoint’s ment’
‘sustainable
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CenterPoint Properties is approaching Chicago’s industrial market with a focus on sustainable development and straWAREHOUSE (continued on page 18)