Chicago industrial market report
Q1 2024
The Chicago industrial market continues to demonstrate resilience with strong market fundaments intact including stable vacancy, positive net absorption, robust rental growth, and healthy demand. There has been a substantial decline in construction activity, with only 11.9 msf currently under development, compared to 37.2 msf in Q1 2023.
Overall vacancy
Overall vacancy remains stable recorded at 5.6%, down 10 basis points (bps) at the end of Q1 2024. Vacancy in big box product over 500,000 sf witnessed an uptick in vacancy due to the substantial growth in large-scale development in recent years.
Leasing activity
Leasing activity totaled 9.9 msf at the end of Q1 2024. Although down from the unprecedented levels recorded in 2021 through 2023, demand remains healthy, pointing towards market stabilization.
Construction activity
Construction activity has decreased significantly as developers continue to evaluate the current economic environment. There is a total of 11.9 msf under development with the development type shifting from a historically dominant speculative market to a balanced division with BTS activity.
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