Chicago industrial market report
Q2 2024
The Chicago industrial market continues to see strong leasing activity and rental growth, as construction activity decreases significantly. The overall vacancy rate remains stable at 5.8%, with sublet vacancy peaking with 4.9 million square feet (msf) avilable. Leasing activity remains robust, with 22.2 msf leased in the first half of 2024, reflecting a 53% increase from pre-pandemic averages recorded between 2017 and 2019. Construction activity has declined, with 12 msf under development, a 23% decrease from the previous year. This reduction is anticipated to stabilize vacancy rates and drive rental growth higher due to the scarcity of new inventory.
5.8%
Overall vacancy
Overall vacancy decreased slightly at the end of the first half of 2024 and remains stable at 5.8%.
22.2 msf
Leasing activity
Leasing activity remains robust, with 22.2 msf leased ytd at the end of the second quarter of 2024, a 53% increase from pre-pandemic first half averages. Rental growth remains strong, increasing 5% in the first half of 2024 compared to the previous year.
-23%
Construction activity
Construction activity continues to decline with 12 msf currently under development, down 23% from the year prior.
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