Q2 2025 Industrial Market Report

The Chicagoland industrial market softened midyear, with vacancy rising to 5.66% and net absorption turning negative for the first time in over a decade. Leasing slowed slightly, though rents rose to $9.36 per square foot. Construction activity declined sharply due to high costs and interest rates, with just 1.7 million square feet delivered and 14.3 million under construction.