Chicago’s industrial market remained resilient in 2025, according to a report by Avison Young.
Leasing activity remained robust, with 50.1 million square feet transacted throughout the year. Notably, seven new leases totaling more than 750,000 square feet were signed in 2025, compared to five in 2024, two of which were renewals. Construction is picking up as sustained big-box demand and a stabilizing interest-rate environment bolster developer confidence.
Vacancy remained stable at 6.1% driven by both steady leasing velocity and measured supply growth over the past three years. Development activity is ramping up, totalling 12.6 million square feet underway and 10.5 million square feet delivered throughout 2025.
“Chicago’s industrial market demonstrated exceptional strength in 2025,” said Kathleen Cavanaugh, Market Intelligence, Industrial, Central Region. “These trends reinforce Chicago’s critical role in today’s supply chain networks and its position as a premier hub for corporate operations.”
Don’t miss Carter Andrus, Chief Operating Officer of Prologis, as the keynote interview at Connect Industrial Midwest— taking place Tuesday afternoon, March 10, 2026, at Joe’s Live in Rosemont, IL.
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