Chicago's Industrial Construction Sector Slows Down
Chicago's industrial construction sector is experiencing a slowdown, but this could be beneficial for the market's long-term resilience.
Developers are now more cautious, carefully considering financing hurdles and tenant demands. According to Trevor Ryor, vice president of industrial at Clayco,
activity is well below the levels we've seen in recent years. Larger build-to-suit deals are progressing slowly, while smaller infill sites with buildings under 100,000 square feet are becoming more common.
- Higher interest rates and limited access to capital have led to a shift towards smaller projects.
- Developers are focusing on infill and suburban submarkets with reliable demand.
This disciplined approach could ultimately strengthen the market.
Author's summary: Chicago's industrial sector slows down.