Today is	Commercial real estate appraisals for Chicago Cook County and the Collar Counties of Illinois CommercialAppraiser.com The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.com
	Appraisal Order Form Home Contact Us Client List Appraisers Services Downloads Search Engine Links Metacrawler Metasearch Links Web Site Map	METROPOLITAN CHICAGO INDUSTRIAL MARKET OVERVIEW In addition to being a center of manufacturing, the Chicago area is the second-largest warehousing and storage market in the country, behind New York/New Jersey. The region’s industrial market includes more than 1 billion square-feet of building space, distributed among 19 submarkets in a region extending from northwestern Indiana and Joliet in the south to Kenosha and Racine Counties, Wisconsin, in the north, and from the Lakefront east to Kane and McHenry Counties. CB Richard Ellis data for the 3rd quarter 2005 indicates that the overall availability decreased slightly from 8.9% at 1st quarter 2005 to 8.8% at 2nd quarter. Overall, the market vacancy has improved steadily since starting 2002 at 9.6%. The Illinois portion of the metropolitan industrial market excluding northwest Indiana and southeastern Wisconsin had a vacancy rate of 8.7% in the 3rd quarter.
	Overviews Downtown Chicago Office Market Suburban Chicago Office Market Chicago Industrial Market Chicago Retail Market Chicago Self Storage Market	The following shows the inventory, vacancy and rental rate statistics for the Chicago region based on data in the CB Richard Ellis, MarketView Chicago Industrial Third Quarter 2005: CHICAGO AREA INDUSTRIAL MARKET STATISTICS 3rd QUARTER 2005 Submarket Gross Building Sq Ft    Availability Rate YTD Lease & Sales Activity Under Construction Sq Ft Avg. Asking Lease Rate Range ($PSF/Yr Net*) McHenry County 13,999,107 6.6% 341,864 30,762 $3.75 to $5.00 Lake County 70,765,199 6.8% 2,300,759 237,895 $3.50 to $6.75 NE Cook County 61,212,808 7.7% 1,872,334 185,028 $3.75 to $5.25 NW Cook County 34,411,264 9.3% 1,080,806 197,905 $4.10 to $5.70 N Kane County 21,663,244 8.3% 2,431,730 1,320,000 $4.30 to $5.60 N Du Page County 28,263,216 12.9% 1,603,760 130,516 $4.00 to $6.50 O'Hare Area 107,180,785 8.4% 4,426,078 90,000 $3.50 to $5.50 City North 106,585,664 8.2% 1,389,818 0 $3.25 to $6.00 Near West Suburbs 98,714,508 7.5% 1,805,138 0 $3.00 to $4.95 West Suburbs 39,597,326 9.6% 1,177,042 0 $3.75 to $5.95 Central Kane/DuPage 32,882,506 5.4% 850,741 0 $3.20 to $4.50 Far West Suburbs 53,483,556 9.1% 2,973,6543 343,336 $3.05 to $4.50 Southwest Suburbs 49,965,813 6.4% 725,852 1,210,086 $3.00 to $5.25 Far SW Suburbs 59,771,868 14.3% 4,986,615 1,792,631 $2.95 to $4.65 City South 137,336,921 8.0% 4,032,045 220,000 $2.80 to $4.25 South Suburbs 60,541,173 9.5% 1,864,250 1,012,000 $3.15 to $4.95 Joliet Area 28,794,247 13.9% 1,700,088 4,996,400 $3.15 to $4.95 Metro Subtotal 1,005,169,205 8.7% 35,562,574 11,766,559     Northwest Indiana 27,416,580 14.9% 230,109 100,000 $2.00 to $5.50 Kenosha/Racine 13,405,589 6.1% 114,762 0 $3.50 to $4.75 MARKET TOTAL 1,045,991,374 8.8% 35,907,445 11,866,559     * Net lease rate for spaces 50,000 sf and larger. Includes all lease types whereby the tenant pays an agreed rent plus most, or all, of the operating expenses and taxes for the property, including utilities, insurance and/or maintenance expenses. Source: CBRE MarketView Chicago Third Quarter 2005 Absorption and Vacancy Chicago remains an active construction and investment market. The biggest drag is the lack of significant employment growth in manufacturing and other industrial intensive sectors. Nevertheless, overall leasing activity totaled nearly 9.0 million square-feet during the quarter, bringing the year-to-date figure to 23.4 million square-feet, indicative of strong demand. The industrial sales market continues to be robust, with the total year-to-date volume of 12.5 million square-feet sold. This exceeds the 2004 sales for the same period by almost 2.0 million square-feet. Lease Rates Average asking lease rates during the 3rd quarter remain stable throughout the region- ranging from $2.00 per-square-foot to $6.75 per-square-foot, on a net l ease basis for industrial spaces of 50,000 square-feet or larger. Overall, the CB Richard Ellis survey indicates that net rental rates for the Chicago area market averaged $4.22 per-square-foot, compared to $4.18 per-square-foot at 1st quarter. The lowest rates are in the submarkets with the greatest surplus inventory such as Northwest Indiana. Joliet, which leads the region in construction starts, is also marked by low lease rates at $2.90-$4.50. Lake County reports some of the higher rates with a range of $3.50 to $6.75. Construction Overall, 11.9 million square-feet are under construction including 6.6 million square-feet in projects that broke ground in the 3rd quarter. The Southern submarkets including Joliet and the Far Southwest Suburbs account for 79% of all space under construction. The distribution industry is thriving and the I-55 corridor remains an attractive location for warehouse and distribution buildings. The CenterPoint Intermodal terminal in Elwood has two build-to-suit buildings for Wal-Mart under construction totaling 3.4 million square-feet. There are other significant projects also underway in Minooka and Romeoville. Of the 11.9 million square-feet under construction, 7.9 million square-feet (66%) are build-to-suits, while 4.0 million square-feet (34%) are speculative.
		CommercialAppraiser.com The official web site of Peterson Appraisal Group, Ltd. 6035 N. Northwest Highway, Suite 200 Chicago, IL 60631 Phone:773/763-6750 Fax:773/763-6492 E-mail: PAG@CommercialAppraiser.com © 2007 Peterson Appraisal Group, Ltd.