Big-box vacancy compresses across Chicago’s industrial market

Big-box vacancy in buildings over 500,000 sf declined an impressive 110 basis-points quarter-over-quarter to just 6.5% in Q2 2026 and now sits 250 basis-points below pre-pandemic levels. As availability has compressed, rental rates for facilities over 500,000 sf have continued to climb, increasing 6.6% year-over-year.
Year-to-date, 13 transactions exceeding 500,000 sf have been completed, with nine representing new lease agreements, underscoring continued expansion activity and sustained occupier demand across the market. Notably, 55% of big-box leasing activity occurred in the I-80 Corridor, a key logistics hub anchored by Interstate 80.
Demand from logistics, distribution, and parcel delivery operators continues to fuel market activity, accounting for 60% of all large transactions over 500,000 sf completed year-to-date. RJW Logistics has been particularly active, signing 2.5 msf in 2026 across three transactions, two of which were new lease agreements.
Despite a nearly 20% year-to-date increase in construction activity, the development pipeline remains constrained, with only two buildings available exceeding 500,000 sf currently under construction as vacancy continues to tighten.

August 11, 2026

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