February 19, 2010
2009 was the worst year ever for owners of industrial real estate. While there were 38.5 million square feet leased or sold in 2009, this total is down 36% from the Metro Chicago’s peak of 59.8 million square feet of deals in 2005. In addition, lease renewals accounted for a large portion of the 38.5 million square feet.
More importantly, the 22 million square feet of negative absorption for the Metro-Chicago Area is the key indicator of the lack of demand for industrial real estate. Companies are consolidating, companies are not moving and companies are not leasing or buying industrial real estate!
However, a change is gonna come. While we expect 2010 to resemble 2009, we think leasing demand will increase in 2011. Lease pricing will firm up once landlords sense that leasing demand is increasing.
If you are a tenant your window of opportunity is closing. Now is the time to renegotiate your current lease!
For a free evaluation of your lease situation, please contact:
Jack Rosenberg, SIOR 847-698-8208 Fred Regnery 847-698-8238 Ned Frank 847-698-8...
