Q1 2025 Chicago Industrial Report

The Chicagoland industrial market showed signs of cooling in Q1 2025. Vacancy rose slightly to 5.44%, and net absorption hit its lowest point since 2005 at 353,000 square feet. Leasing volume increased to 9.5 million square feet but remained below 10 million for the third straight quarter. Rents climbed to $9.20 per square foot, though landlords are cautious amid tenant-favorable conditions. Construction slowed, with just 2 million square feet delivered and 14.4 million under development.