News
Cautiously Optimistic
July 8, 2010
| With 35 years of experience, Cushman & Wakefield's Jim Dieter has seen the ups and downs of industrial real estate. Touring the country for his new role as C&W's industrial head, he's forecasting a potentially good year for Chicago's submarkets. | |
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| The industrial manufacturing index has shown positive increases for the past 10 months, leaving Jim “cautiously optimistic†about the sector. He tells us that as customers require more product on store shelves, inventories are being replenished—now companies that have reduced their real estate footprints need to expand again. His forecast? A predictable uptick in demand will lead to positive absorption throughout '11 (and Chicago will benefit from minimal new construction). This is good news for the economy-—manufacturing creates jobs, grows companies, and enhances the railroad and shipping industries. The only factor that might temper this demand is if job indicators don't coincide with actual employment. | |
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| Although the beginning of the year was a challenge for Chicago— leasing activity saw a 14.4% drop in 1Q and rental rates continued to decline, according to C&W—some tenants are finally in a position to make real estate decisions. In Hoffman Estates lies one of the sites that may be next for development, Huntington 90, above, where up to four parcels are ready for build-to-suit development. The park is a co-development of McShane Development and Metlife. Jim is based in the Windy City, and though he's been in his position for a little over three months, he's already visited NYC, NJ, Philly, Baltimore, Orlando, LA, and Toronto (next stops: Atlanta and Dallas) to meet with C&W's local offices and clients. |
