Chicago industrial market report
Q1 2025
The Chicago industrial market saw a slight uptick in overall vacancy at the end of the first quarter of 2025 at 6.0% up 10 basis points from the previous quarter however, well below the national average vacancy of 8.7%. Leasing activity softened, with a total of 9.6 msf leased in the first quarter as several users within the market adopt a cautious stance, waiting to see the effects of tariffs and other measures introduced by the new administration. Construction activity has trended downward with 10.9 msf currently under development with 36% of that being speculative projects.
6.0%
Vacancy slightly upticks
Overall vacancy remains healthy at 6.0%, increasing slightly from the prior quarter. Notably, 65% of the submarkets (thirteen out of twenty) have vacancy rates below 6%, with higher vacancies concentrated in just a few submarkets.
10.9 msf
Construction activity dips
Construction activity continues to decline, with 10.9 msf currently under development with 8.6 msf expected to be delivered by the end of the year.
9.6 msf
Leasing activity declines
Leasing activity slowed as several decision-makers have paused on real estate transactions, awaiting the impacts of tariffs and other measures introduced by the new administration. A total of 9.6 msf was leased during the first quarter of 2025.
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