Dive Brief:
- Warehouse construction is rebounding in Chicago, with seven or more spec warehouses to be completed between late last year and the end of 2017, Crain's Chicago Business reports.
- Those facilities should add about 1 million square feet of space, more than double the amount of spec industrial space built in the previous 14 years.
- In a separate item this week, Crain's reported that Amazon has announced plans to add a more than 850,000-square-foot distribution center in Chicago's Monee suburb, marking the e-tailer's third announcement of a Chicago-area fulfillment facility in about three months.
Dive Insight:
As fulfillment timelines tighten, supply chains are transforming to rely on larger warehouses in across the U.S. to deliver their goods on time.
In addition, a recent DAT analysis of load boards reveals the demand for spot pickups is increasing in the Midwest, showing an increased movement of freight in those regions. Meanwhile, CBRE reported recently that the first half of this year marked one of the industrial real estate market's strongest midyear performances since 2000.
As a result, developers expect quick absorption of urban warehouse space despite the rising rents and extremely limited supply revealed in the CBRE report.
