{"id":1004777649,"date":"2026-04-24T05:37:05","date_gmt":"2026-04-24T13:37:05","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004777649"},"modified":"2026-04-28T03:25:10","modified_gmt":"2026-04-28T11:25:10","slug":"chicago-industrial-market-update","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/","title":{"rendered":"Chicago’s Industrial Market Records Strong Starts Amid Elevated Vacancy"},"content":{"rendered":"\n

<\/p>\n\n\n

\n
\"A<\/a>
University Park Logistics Center will comprise more than 970,000 square feet when complete. Image courtesy of Heitman Architects Inc<\/em>.<\/figcaption><\/figure><\/div>\n\n\n

Chicago\u2019s industrial market maintained steady development activity throughout 2025, supported by one of the highest volumes of construction starts in the nation.<\/p>\n\n\n\n

While industrial deliveries<\/a> remained subdued compared to peer markets, new groundbreakings placed the metro among the most active nationally. Investment activity slowed at the start of the year, with pricing ranking among the lowest in the peer set. Vacancy continued to trend above most major metros, though leasing activity remained ongoing, according to Yardi Matrix data.<\/p>\n\n\n\n

Construction starts high, while pipeline trails peers<\/h2>\n\n\n\n

Chicago\u2019s industrial development pipeline totaled nearly 13.6 million square feet as of January 2026, representing 1.2 percent of total stock and trailing the 1.7 percent national average. Dallas (28.8 million square feet) and Phoenix (18.1 million square feet) maintained larger pipelines, followed by Atlanta (10 million square feet) and Indianapolis (6.4 million square feet).<\/p>\n\n\n\n

Developers broke ground on 48 projects totaling 12.2 million square feet in 2025, also representing 1.1 percent of stock. Chicago recorded the third-largest volume of construction starts among peer markets last year, behind Dallas (26.7 million square feet) and Phoenix (13.7 million square feet).<\/p>\n\n\n

\n
\"Rendering<\/a>
Mapletree purchased the site at 3600 Houbolt Road in Joliet, Ill., in May. The property is near the Joliet Intermodal Center. Rendering courtesy of Mapletree Investments<\/em><\/figcaption><\/figure><\/div>\n\n\n

In September, Hillwood Investment Properties and Clarius Partners broke ground on the 970,123-square-foot University Park Logistics Center<\/a> in University Park, Ill. The speculative development rising on a 75-acre site is slated for completion in the third quarter of this year.<\/p>\n\n\n\n

One month later, Mapletree Investments started construction on two industrial facilities<\/a> at 3600 Houbolt Road in Joliet, Ill., and 1360 Schiferl Road in Bartlett, Ill.<\/p>\n\n\n\n

More recently, AbbVie announced plans to begin a $380 million expansion<\/a> at its North Chicago headquarters campus. The project includes two new active pharmaceutical ingredient manufacturing facilities designed to incorporate advanced manufacturing technologies and artificial intelligence.<\/p>\n\n\n\n

Deliveries remain among lowest in the peer group<\/h2>\n\n\n
\n
\"Rendering<\/a>
The warehouse at 2700 York Road has two drive-in doors and 16 dock doors. Image courtesy of Logistics Property Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Chicago delivered 6.5 million square feet of industrial space across 29 facilities in 2025, accounting for 0.6 percent of total stock\u2014well below the 1.5 percent national average.<\/p>\n\n\n\n

Among peer markets, Dallas (21.4 million square feet) and Phoenix (18 million square feet) led completions, followed by Kansas City and Philadelphia at 13.6 million square feet each. Only Indianapolis (2 million square feet) recorded a lower total.<\/p>\n\n\n\n

Logistics Property Co. delivered a 122,470-square-foot facility at 2700 York Road<\/a> in Elk Grove Village, Ill., within the O\u2019Hare submarket. The location provides quick access to interstates 390, 294 and 90.<\/p>\n\n\n\n

Early-year sales activity reflects lower pricing levels<\/h2>\n\n\n\n

Chicago industrial space<\/a> traded for a total of $184.9 million as of the end of January, with 26 facilities adding up to 2.7 million square feet changing hands. Average pricing stood at $75.43 per square foot, placing Chicago among the lowest-priced gateway markets. Only Kansas City, at $74.33 per square foot, recorded a lower average.<\/p>\n\n\n\n

Philadelphia led the peer group at $212.58 per square foot, followed by Phoenix at $150.85 per square foot and Atlanta at $150.76 per square foot.<\/p>\n\n\n

\n
\"Aerial<\/a>
Brennan\u2019s newly acquired portfolio includes warehouses, such as this one, which average about 62,000 square feet. Image courtesy of Brennan Investment Group<\/em><\/figcaption><\/figure><\/div>\n\n\n

In mid-January, Brennan Investment Group acquired an 801,728-square-foot portfolio<\/a> of 13 shallow-bay industrial<\/a> properties across metro Chicago and Milwaukee. InvestCorp sold 11 assets for $64 million, while Farallon Capital Management sold two properties for $13 million. The portfolio spans submarkets including Interstate 55, Lake County, Northern DuPage, Central Kane\/I-88 and Milwaukee\u2019s Airport and Northwest.<\/p>\n\n\n\n

More recently, Matterhorn Venture Partners and TPG Angelo Gordon U.S. Real Estate formed a joint venture targeting value-add industrial assets<\/a> in metro Chicago and the broader Midwest. The venture carries an initial equity commitment of $300 million, with total buying power exceeding $900 million.<\/p>\n\n\n\n

Vacancy remains elevated despite active leasing<\/h2>\n\n\n
\n
\"Plainfield<\/a>
Trammell Crow Co. has secured a full-building lease at Plainfield Business Center. Image courtesy of Trammell Crow Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Chicago\u2019s industrial vacancy rate reached 12.5 percent in January, according to Yardi Matrix data. Dallas (11.4 percent) and Phoenix (11 percent) posted the next-highest rates among peer metros.<\/p>\n\n\n\n

Despite elevated vacancy, leasing activity continued. More recently, Trammell Crow Co. secured a full-building lease<\/a> for a 788,000-square-foot industrial facility part of Plainfield Business Center in Plainfield, Ill., with RJW Logistics Group as the inaugural tenant. <\/p>\n\n\n\n

The developer will also move forward with a second building of the same size at the site. At full build-out, Plainfield Business Center will encompass more than 8 million square feet.<\/p>\n","protected":false},"excerpt":{"rendered":"

Find out how this market is performing compared to its peers, according to Yardi Matrix.<\/p>\n","protected":false},"author":3014,"featured_media":1004784538,"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],"class_list":["post-1004777649","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"],"acf":[],"yoast_head":"\nChicago's Industrial Market Records Strong Starts Amid Elevated Vacancy - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"The Chicago industrial sector remained active through the third quarter, with construction activity accelerating.\" \/>\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\/chicago-industrial-market-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chicago's Industrial Market Records Strong Starts Amid Elevated Vacancy\" \/>\n<meta property=\"og:description\" content=\"The Chicago industrial sector remained active through the third quarter, with construction activity accelerating.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/\" \/>\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=\"2026-04-24T13:37:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-28T11:25:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/01\/Brennan_Investment_Group.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\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\/chicago-industrial-market-update\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/\",\"name\":\"Chicago's Industrial Market Records Strong Starts Amid Elevated Vacancy - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/01\/Brennan_Investment_Group.jpg\",\"datePublished\":\"2026-04-24T13:37:05+00:00\",\"dateModified\":\"2026-04-28T11:25:10+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/a0c04b9de1387474e28c9ebdb0444e59\"},\"description\":\"The Chicago industrial sector remained active through the third quarter, with construction activity accelerating.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/01\/Brennan_Investment_Group.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/01\/Brennan_Investment_Group.jpg\",\"width\":800,\"height\":600,\"caption\":\"Brennan\u2019s newly acquired portfolio includes warehouses, such as this one, which average about 62,000 square feet. 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