Chicago industrial market report

Q4 2024

At the end of 2024, the Chicago industrial market saw sublet availability reach a record-breaking 16.7 million square feet (msf), accounting for 1.4% of the total market inventory. Despite this increase, the overall vacancy rate remained healthy at 5.6%. Leasing activity, which normalized after a pandemic-induced surge, saw 40.1 msf leased in 2024, surpassing the annual historical averages of 33.5 msf from 2017-2019. The market remains vibrant, driven by robust demand and strong fundamentals. Additionally, construction activity is gradually increasing, with 14 msf currently under development.
5.6%

Overall vacancy

Overall vacancy remains healthy at 5.6% at year-end 2024, up 10 basis points from the year prior.  Sublet vacancy had the most notable increase, expanding by more than 2 msf over the course of 2024.

40.1 msf

Leasing activity

Leasing activity has stabilized with 40.1 msf leased throughout 2024, surpassing pre-pandemic annual averages of 33.6 msf.

14 msf

Construction activity

Construction activity is slowly accelerating with a total of 14 msf currently under development with more than half of that space being built on a build-to-suit basis. 

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