Chicago industrial construction activity slowly accelerating
- Construction activity in the Chicago industrial market is gradually gaining momentum. In 2024, 9.3 msf of new projects commenced, with 62% of this activity taking place in the second half of the year. Currently, 14 msf is under development, with 57% of that space being developed on a build-to-suit basis.
- The market continues to see build-to-suit projects dominate the market over speculative development, further highlighting the ongoing challenges with securing development financing. Also of note, bulk projects over 500,000 sf are commanding a greater share of the pipeline.
- The two largest projects to break ground in 2024 are situated in the I-80 Corridor submarket. Both are build-to-suit facilities exceeding 1 msf for GE/Haier in Morris and CJ Logistics in Elwood. The I-80 corridor’s strategic location near two major interstates and the presence of two significant intermodal terminals, BNSF Logistics Park Chicago, and UP Joliet Intermodal, make it a prime choice for logistics.
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