Warehouse, industrial space fills along I-55, report says

The I-55 Corridor has made a recovery following business shutdowns earlier in the pandemic, according to JLL Chicago industrial research experts George Cutro and Chad Buch.

A year ago, the I-55 Corridor had a double-digit vacancy rate. However, that vacancy rate dropped to about 1% in the first quarter, the commercial real estate company said.

Cutro and Buch believe the vacancy rate should remain at a historic low due to a strong pipeline of tenants looking for space in the area.

"Outside of the O'Hare submarket, I-55 is where every developer and landlord wants to be," Buch said in a news release. "Businesses looking to find warehouses continue to fuel speculative builds as the compression for new building demand rises due to low inventory levels. What was once a tenant market has quickly turned, as landlords continue to experience rent appreciation."

I-55 rents have steadily climbed 14% over the last five years with a dramatic 45-cent year-over-year increase, JLL said.