In analysis, many submarkets reported compacting vacancy rates, as increasing demand coupled with limited space returning to the market in the fourth quarter. Submarkets showing notable vacancy improvements year-over-year include Chicago South (1.91%; 7.83% from 9.74%), the I-55 Corridor (1.79%; 8.91% from 10.70%), and West Cook (1.72%; 8.71% from 10.43%). The Northwest Indiana and Southeast Wisconsin submarkets followed suit, reporting substantial vacancy rate improvements.
Despite a recent surge of speculative construction activity, new product deliveries have not adversely affected overall vacancy due to steady absorption rates. The economic recovery and the rise of e-commerce and supply chain logistics in the Midwest will contribute to this trajectory of vacancy rate improvement in 2015.