Chicago industrial market report
Q3 2026
Chicago’s industrial market continued to demonstrate strong fundamentals in Q3 2026, supported by sustained occupier demand, tightening vacancy and continued rent growth. Big-box leasing remains a key driver of activity, while positive absorption and limited availability of high-quality space continue to reinforce healthy market conditions. Development activity is gaining momentum, with 18.2 msf currently under construction, while speculative development remains measured at 53% of the pipeline.
Big-box leasing already surpassed 2025
Big-box leasing continues to gain momentum across Chicago, totaling 17.1 msf year-to-date and accounting for nearly 40% of overall leasing activity, up from 27% in 2025. Activity has already surpassed the 15.8 msf recorded during full-year 2025
Class A pulling Chicago rents higher
Class A rents have demonstrated sustained growth, averaging 7.9% annually from 2021 through 2026. Strong demand, declining vacancy and two years of subdued construction have constrained the availability of modern, high-quality space, continuing to place upward pressure on rents.
Overall vacancy decreasing
Chicago’s industrial market continued to tighten in Q3 2026, with vacancy falling 40 basis points from year-end 2025 to 5.9%. Net absorption remained positive at 7.9 msf year-to-date, keeping 2026 on pace to surpass full-year 2025 levels.
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