New Signs of Economic Recovery for the Region?

By Kevin Robinson in News on Jul 13, 2010 3:20PM

Crain's Chicago Business is reporting that vacancy in the industrial real estate market is down this quarter, breaking two years of declines. And while some of that decline is explained by demolition of a few larger properties, net absorption, a "key gauge of demand," is up after two years as well. Net Absorption is the square feet leased in a specific geographic area over a fixed period-of-time after deducting space vacated in the same area during the same period. An increase in net absorption shows more space being leased. “I think the momentum will continue,” David Bercu, a principal at Colliers International told Crain's. “Now, the (rental) rates and prices are certainly lower than what Chicago is accustomed to. But before we can see recovery in pricing, we need to see some absorption.”

Bercu also told Crain's that there are a series of big deals coming that will help the vacancy rate inch down. More leasing of industrial space in the region indicated that there is an increase in demand, and producers are responding to that demand, indicating that the economy may be recovering.