{"id":1004765401,"date":"2025-07-28T01:00:00","date_gmt":"2025-07-28T09:00:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004765401"},"modified":"2025-07-31T06:47:01","modified_gmt":"2025-07-31T14:47:01","slug":"chicagos-industrial-pipeline-grows-vacancy-hits-double-digits","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/chicagos-industrial-pipeline-grows-vacancy-hits-double-digits\/","title":{"rendered":"Chicago\u2019s Industrial Pipeline Grows, Vacancy Hits Double Digits"},"content":{"rendered":"\n

<\/p>\n\n\n

\n
\"Rendering<\/a>
Part of Plainfield Business Center, the speculative warehouse was designed to have 40-foot clear heights and 80 dock doors. Image courtesy of Trammell Crow Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Chicago\u2019s industrial market showed mixed performance through the first five months of 2025, according to Yardi Research Data. Construction activity gained momentum, while deliveries and pricing trended downward. <\/p>\n\n\n\n

The metro had 7.3 million square feet of industrial space underway in May, showing a significant increase from the 1.5 million square feet under construction during the same period last year. Meanwhile, industrial deliveries totaled less than half the volume recorded in the same period in 2024.<\/p>\n\n\n\n

Despite the slowdown, Chicago remained one of the top-performing markets nationally in terms of completions and construction volume.<\/p>\n\n\n\n

Construction activity accelerates<\/h2>\n\n\n\n

At the end of May, Chicago\u2019s industrial sector had about 7.3 million square feet of space underway. The 22 developments under construction account for 0.7 percent of the metro\u2019s total stock, below the 1.7 percent U.S. average. This marks a significant increase from the same period last year, when the pipeline comprised only 1.5 million square feet across four properties.<\/p>\n\n\n\n

Among other major industrial markets, the metro fared better than New Jersey (6.9 million square feet), Indianapolis (4.6 million square feet) and Kansas City (2.6 million square feet). Phoenix (17.7 million square feet) maintained first place.<\/p>\n\n\n

\n
\"Rendering<\/a>
The 2700 York Road facility will feature 16 dock doors, two drive-in doors and 124 vehicle parking spots. Image courtesy of Logistics Property Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Industrial construction starts remained modest, with just seven properties totaling 1.7 million square feet breaking ground. That figure accounts for only 0.2 percent of the metro\u2019s total inventory, falling short of the 0.4 percent national average.<\/p>\n\n\n\n

One of the largest projects underway is Trammell Crow Co.\u2019s Plainfield Business Center<\/a>, an industrial campus to comprise more than 8 million square feet in Plainfield, Ill. The first 788,000-square-foot speculative warehouse is slated for delivery this year.<\/p>\n\n\n\n

This March, Logistics Property Co. purchased a nearly 6-acre site in Elk Grove Village, Ill., with plans to start construction on an industrial development. The site is just west of Chicago O\u2019Hare International Airport and traded for $10.5 million. The company plans to develop a 123,000-square-foot rear-load industrial facility<\/a>, situated at 2700 York Road. Completion is estimated for the second quarter of 2026.<\/p>\n\n\n\n

Delivery volume falls, still outpaces most peer markets<\/h2>\n\n\n\n

Year-to-date through May, 4.3 million square feet of industrial space came online in Chicago. Deliveries accounted for 0.3 percent of the market\u2019s total stock, slightly lower than the 0.6 percent national average. The metro\u2019s industrial delivery volume fell to almost half its year-ago size, when 9.2 million square feet entered the market.<\/p>\n\n\n\n

Compared to peer markets, only Phoenix (10.5 million square feet) and Kansas City (8.6 million square feet) surpassed the Windy City in industrial deliveries<\/a>. New Jersey (2.5 million square feet), the Inland Empire (2.3 million square feet) and Indianapolis (752,500 square feet) trailed behind.<\/p>\n\n\n\n

Uline Inc. has finished the expansion of its campus in Kenosha, Wis., with a 1.4 million-square-foot addition<\/a>. The distribution center offers racking totaling approximately 882,900 square feet, as well as 476 dock doors and 41 bays. The site also features a stormwater pond.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO:<\/strong> Industrial Report: Tariff, Construction Uncertainty Reshape Market Dynamics<\/a><\/p>\n\n\n\n

\n\n\n\n

Sales volume climbs, prices trail national average<\/h2>\n\n\n\n

Industrial sales volume <\/a>totaled almost $1.1 billion year-to-date through May in the metro, with properties trading at an average of $93.36 per square foot, according to Yardi Research Data. Almost 12.4 million square feet spread across 108 properties changed hands.<\/p>\n\n\n\n

The Windy City posted one of the lowest average sale prices among the top U.S. industrial markets. Prices in the Inland Empire ($247.89 per square foot) and New Jersey ($251.37 per square foot) were much higher than the $142.99 national average.<\/p>\n\n\n

\n
\"Aerial<\/a>
Stonepeak has acquired a three-building portfolio in Elwood, Ill., at the largest inland port in North America. Image courtesy of Stonepeak<\/em><\/figcaption><\/figure><\/div>\n\n\n

This April, Stonepeak purchased a three-building, 1.7 million-square-foot rail-served logistics portfolio<\/a> in the Chicago market from CenterPoint Properties. The sale price for the fully leased asset was $125 million. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.<\/p>\n\n\n\n

NorthPoint Development has recently paid a combined $270 million for a 2.8 million-square-foot industrial portfolio<\/a> in Elgin, Ill. High Street Logistics was the seller, after having acquired it for $230 million four years ago. The collection comprises 11 Class A warehouses located about 43 miles northwest of downtown Chicago.<\/p>\n\n\n\n

Chiago\u2019s vacancy reaches double digits<\/h2>\n\n\n\n

Chicago\u2019 industrial vacancy rate at the end of May clocked in at 8.4 percent, slightly lower than the national average of 8.5 percent.<\/p>\n\n\n

\n
\"Exterior<\/a>
The cross-dock industrial property is at 25340 S. Ridgeland Ave., within 20 miles of three intermodal yards. Image by VHT Studios, courtesy of Seefried Industrial Properties<\/em><\/figcaption><\/figure><\/div>\n\n\n

At the beginning of this year, CenterPoint Properties signed a full-building lease with 3PL firm RJW Logistics Group for a 976,954-square-foot industrial facility<\/a> in Joliet, Ill. The property is at 2903 Schweitzer Road inside the 6,400-acre CenterPoint\u2019s Intermodal Center \u2013 Joliet\/Elwood, North America\u2019s largest inland port.<\/p>\n\n\n\n

This March, Nuveen signed a 168,741-square-foot lease<\/a> at its industrial facility in Monee, Ill., within Chicago\u2019s Southern Will County submarket. NewAge Products joined the roster, bringing the property to full occupancy. Seefried Industrial Properties developed the 621,246-square-foot asset.<\/p>\n","protected":false},"excerpt":{"rendered":"

The metro’s pipeline increased substantially year-over-year, Yardi Research Data shows.<\/p>\n","protected":false},"author":3014,"featured_media":1004711104,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1491,21782,22251,21748,21783,52420,13],"tags":[51047,50674],"class_list":["post-1004765401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chicago","category-development","category-in-focus","category-industrial","category-investment","category-market-updates","category-midwest","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nChicago\u2019s Industrial Pipeline Grows, Vacancy Hits Double Digits - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Chicago's industrial pipeline increased substantially compared to the same period last year, according to Yardi research data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/chicagos-industrial-pipeline-grows-vacancy-hits-double-digits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chicago\u2019s Industrial Pipeline Grows, Vacancy Hits Double Digits\" \/>\n<meta property=\"og:description\" content=\"Chicago's industrial pipeline increased substantially compared to the same period last year, according to Yardi research data.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/chicagos-industrial-pipeline-grows-vacancy-hits-double-digits\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-28T09:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-31T14:47:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/04\/Stonepeak-has-acquired-a-three-building-portfolio-in-Elwood-Ill.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"801\" \/>\n\t<meta property=\"og:image:height\" content=\"610\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Firtea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chicagos-industrial-pipeline-grows-vacancy-hits-double-digits\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/chicagos-industrial-pipeline-grows-vacancy-hits-double-digits\/\",\"name\":\"Chicago\u2019s Industrial Pipeline Grows, Vacancy Hits Double Digits - 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