A history of Chicago’s two commercial real estate markets
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In an inflationary environment, what are the keys to overcoming the challenges of labor and property costs?
At present, the disruption of the supply chain, whether it is raw material sourcing or direct delivery to consumers, is a significant problem. SIOR brokers are involved in problem solving to resolve these bottlenecks, including a tendency to outsource all or part of production.
However, securing industrial space in Chicago is currently difficult. According to Newmark Research, the third quarter industrial vacancy rate fell to a new high of 5.7%. Actual rents are rising rapidly and have exceeded asking rents in several submarkets. This dynamic will likely continue for the foreseeable future.
As a result, a customer can see their options dwindle rapidly. Businesses need to plan for growth as much as possible and get into the space now. For example, SIOR brokers have helped clients rent space in new buildings even before construction began. If a tenant waits too long, the space will no longer be available or the price will have increased by 10% or even 20%.
We also advise companies to research locations to meet their workforce needs. Although Illinois has more labor available than many other states, labor shortages remain a real concern in most industry sectors and types of employment. Real estate can be part of a larger solution to solving problems in the workplace. All workers appreciate a shorter commute, a clean, safe and modern work environment and access to amenities to make the working day easier.
The experienced brokers appointed by SIOR excel at understanding market dynamics and building the relationships necessary to discover opportunities and close deals. They meet strict membership requirements, adhere to a code of ethics and values, and deliver the highest value to their customers. The SIOR network fosters relationships among major brokers, building trust over time, which pays off when deals need to be made quickly and thoughtfully.
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