SUMMARY

‒ 2021 net absorption was 87 million sq. ft year-to-date, well above levels previously seen.

‒ Midwest industrial vacancy decreased 0.3% over year-end 2020 to 3.7% in Q3 2021.

‒ Average asking lease rates rose year-over-year from $5.19 per sq. ft. at the close of Q4 2020 to $5.27 at the close of Q3 2021

‒ Midwest construction activity remained strong in Q3 2021 with 97.8 million sq. ft. underway. 37.7% of current construction underway is already leased.

‒ The Midwest markets posted 49.8 million sq. ft. of industrial leasing activity in Q3 2021, 60.5% of which was new leasing activity.

The Midwest industrial market continued to see new construction activity, occupancy growth, sustained low vacancy, and steady average asking lease rates despite tough economic conditions. Net absorption outpaced deliveries year-to-date 2021. 87 million sq. ft. of positive net absorption was posted in year-to-date. 68 million sq. ft. of new construction was completed in the same period.