Elgin's Vacancy Rate's Continued

Industrial vacancy rates were at an all-time low of 2.11% in the third quarter of 2019. With millions of square feet of new construction added in the last few years and a few large buildings that have recently come on the market the rate has climbed to 6.6% today. This is still below the 10-year average vacancy of 7.07%. Elgin had a net 12-month net absorption of 196,000 square feet. Net absorption is the sum of square feet that became physically occupied, minus the sum of square feet that became physically vacant. Several recently finished buildings may all be occupied in the coming months and should bring the rate back down.

The Overall vacancy rate for 11 distinct types of commercial real estate property segments in Elgin increased from an all-time low of 4.86% in the third quarter of 2019 to 7.8% today. The overall 10-year average is 8.19%. Market rent per square foot is at an all-time high of $12.69. In the last 12 months, and 121,000 square feet of commercial space was absorbed. The existing inventory is 40 million square feet of commercial space in Elgin. Demand is projected to outweigh supply over the next 5 years