Chicago industrial vacancy impressively low compared to other cities

Chicago has navigated the construction boom exceptionally well, maintaining a healthy vacancy rate of 5.6% at the end of 2024. This is 170 basis-points lower than the national average, showcasing Chicago’s outperformance compared to other major markets. While developers have remained disciplined, big box leasing has been robust with three new speculative building leases of +/- 1 msf signed in 2024.
In 2023, construction activity in Chicago surged, adding 35 msf of new inventory. This was followed by an additional 13.8 msf of new product in 2024. Concerns about overbuilding within the Chicago industrial market are now a thing of the past.

March 3, 2025

US-IL-CHSUB Chicago Suburban