{"id":1004795894,"date":"2025-12-09T02:06:00","date_gmt":"2025-12-09T10:06:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004795894"},"modified":"2026-04-21T02:15:23","modified_gmt":"2026-04-21T10:15:23","slug":"chicago-industrial-construction-surges-vacancy-climbs","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-construction-surges-vacancy-climbs\/","title":{"rendered":"Chicago Industrial Construction Surges, Vacancy Climbs"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"620\" data-attachment-id=\"1004772779\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/university_park_industrial_cropped\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"University_Park_Industrial_Cropped\" data-image-description=\"&lt;p&gt;Cropped for featured image. Image came in email from Avison Young on 9\/25.&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Clarius Partners and Hillwood Investment Properties will jointly market the industrial facility for lease. Image courtesy of Heitman Architects Incorporated&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg?w=800\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg\" alt=\"A rendering of the industrial facility being developed by Clarius Partners and Hillwood Investment Properties.\" class=\"wp-image-1004772779\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/09\/University_Park_Industrial_Cropped.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><figcaption class=\"wp-element-caption\">University Park Logistics Center will comprise more than 930,000 square feet. <em>Image courtesy of Heitman Architects Inc.<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>The Chicago industrial sector remained active through the third quarter, with construction activity accelerating and investment holding steady, according to Yardi Matrix. The metro\u2019s development pipeline expanded to more than 11 million square feet underway, marking a significant increase from last year\u2019s limited construction volume.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/top-markets-for-industrial-deliveries\/\">Industrial deliveries<\/a>, however, slowed to about half of 2024\u2019s level, while vacancy climbed to one of the highest rates among major industrial markets. Despite rising availability, demand continued to support leasing and investment, with more than $1.9 billion in properties trading hands through September.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-construction-activity-accelerates-across-metro-chicago\">Construction activity accelerates across metro Chicago<\/h2>\n\n\n\n<p>Year-to-date through September, 11.3 million square feet of <a href=\"https:\/\/www.commercialsearch.com\/industrial\/us\/il\/chicago\/\" target=\"_blank\" rel=\"noreferrer noopener\">Chicago industrial space<\/a> was under construction. A total of 13 projects are set to come online, accounting for 1 percent of the total stock. This marks a major increase from last year, when just 1.5 million square feet across four properties was underway.<\/p>\n\n\n\n<p>Dallas (31.8 million square feet) and Phoenix (17.2 million square feet) led all markets, while Atlanta (11 million square feet) remained close. Indianapolis (4.6 million square feet) and Kansas City (3.6 million square feet) trailed.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"620\" data-attachment-id=\"1004776541\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/mapletree-kicks-off-2-chicago-area-industrial-projects\/3600-houbolt-rd\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"3600 Houbolt Rd\" data-image-description=\"&lt;p&gt;Gina Faridniya from Mapletree sent the rendering &lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Mapletree purchased the construction site at 3600 Houbolt Rd. in Joliet, Ill., back in May and is located near the Joliet Intermodal Center. Rendering courtsey of Mapletree Investments&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png?w=800\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png\" alt=\"Rendering of 3600 Houbolt Rd.\" class=\"wp-image-1004776541\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/3600-Houbolt-Rd.png?resize=768,595 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><figcaption class=\"wp-element-caption\">Mapletree purchased the construction site at 3600 Houbolt Road in Joliet, Ill., back in May and is located near the Joliet Intermodal Center. <em>Rendering courtesy of Mapletree Investments<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Hillwood Investment Properties and Clarius Partners are developing a 970,123-square-foot speculative facility in University Park, Ill. Spanning 75 acres, <a href=\"https:\/\/www.commercialsearch.com\/news\/hillwood-clarius-partners-launch-1-msf-industrial-project\/\">University Park Logistics Center<\/a> is expected to be completed by the third quarter of 2026. <\/p>\n\n\n\n<p>In September, Mohr Capital announced <a href=\"https:\/\/www.commercialsearch.com\/news\/mohr-to-develop-1-msf-build-to-suit-chicagoland-project\/\">a 1 million-square-foot build-to-suit project<\/a> in DeKalb, Ill., with expansion potential up to 1.5 million square feet. Also this fall, <a href=\"https:\/\/www.commercialsearch.com\/news\/mapletree-kicks-off-2-chicago-area-industrial-projects\/\">Mapletree Investments broke ground<\/a> on two developments\u2014one at 3600 Houbolt Road in Joliet, Ill., and another at 1360 Schiferl Road in Bartlett, Ill.\u2014both slated for completion next year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-delivery-pace-slows-but-remains-solid\">Delivery pace slows, but remains solid<\/h2>\n\n\n\n<p>As of the end of September, Chicago delivered nearly 6 million square feet of industrial space across 19 properties, representing 0.5 percent of total stock, below the 1.1 percent national average. Deliveries were down sharply from the same period last year, when 32 facilities totaling 11.3 million square feet were completed. <\/p>\n\n\n\n<p>The metro recorded similar delivery totals to Atlanta (4.2 million square feet) and New Jersey (4 million square feet), while Dallas (14.7 million square feet) and Phoenix (14 million square feet) led all markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-investment-volume-steady-amid-price-gap\">Investment volume steady amid price gap<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"512\" data-attachment-id=\"1004781579\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/chicago-industrial-market-update\/niles-industrial-center\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg\" data-orig-size=\"640,512\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;\\u00a9 Yardi Systems, Inc.&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Niles Industrial Center\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg?w=640\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg\" alt=\"Exterior shot of Niles Industrial Center\" class=\"wp-image-1004781579\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg 640w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/12\/Niles-Industrial-Center.jpg?resize=300,240 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\">Niles Industrial Center debuted in 2004 and changed ownership for the first time one year later. <em>Image courtesy of Yardi Matrix<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Chicago\u2019s <a href=\"https:\/\/www.commercialsearch.com\/news\/top-markets-for-industrial-transactions\/\">industrial sales volume<\/a> reached $1.9 billion as of the end of September, according to Yardi Matrix. Some 198 facilities totaling 22.6 million square feet changed hands, with the metro\u2019s average price at $90.13 per square foot. <\/p>\n\n\n\n<p>New Jersey led the nation at $224.37 per square foot, while Indianapolis ($97.83 per square foot) and Kansas City ($87.46 per square foot) posted lower averages.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.commercialsearch.com\/news\/lba-expands-footprint-with-56m-chicago-area-purchase\/\">LBA Logistics purchased<\/a> Principal Real Estate Investors\u2019 413,112-square-foot Niles Industrial Center in metro Chicago for $55.5 million. The complex includes two buildings of 210,458 and 202,654 square feet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-vacancy-climbs-as-tenant-demand-persists\">Vacancy climbs as tenant demand persists<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1372\" height=\"1030\" data-attachment-id=\"1004770178\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/the-missner-group-inks-198-ksf-chicago-lease\/2200-w-145th-st-chicago-in\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg\" data-orig-size=\"1372,1030\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"2200_W_145TH_ST_Chicago_IN\" data-image-description=\"&lt;p&gt;Image from press release from The Missner Group:&lt;\/p&gt;\n&lt;p&gt;https:\/\/www.missnergroup.com\/blog\/the-missner-group-leases-197587-sf-to-hearn-industrial-services-at-east-chicago-in-industrial-location&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;The building at 1200 W. 145th St, is on a 15-acre lot. Image courtesy of The Missner Group&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg?w=1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg\" alt=\"Exterior shot of an industrial building at 1200 W. 145th St. in East Chicago, Ind.\" class=\"wp-image-1004770178\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg 1372w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg?resize=768,577 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/08\/2200-W-145TH-ST-Chicago-IN-e1756469526207.jpg?resize=1024,769 1024w\" sizes=\"auto, (max-width: 1372px) 100vw, 1372px\" \/><\/a><figcaption class=\"wp-element-caption\">The building at 1200 W. 145th St. is on a 15-acre lot. <em>Image courtesy of The Missner Group<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Chicago\u2019s industrial vacancy rate stood at 12.6 percent at the end of September, according to Yardi Matrix. Among major metros, Dallas (11.8 percent), Indianapolis (10.9 percent) and New Jersey (10.9 percent) had the next-highest levels of available space. Despite the elevated rate, leasing remained active. <\/p>\n\n\n\n<p>The Missner Group <a href=\"https:\/\/www.commercialsearch.com\/news\/the-missner-group-inks-198-ksf-chicago-lease\/\">signed a 197,587-square-foot lease<\/a> with third-party logistics provider Hearn Industrial Services at its newly developed facility at 1200 W. 145th St. in East Chicago, Ind. The tenant will use the space for automotive parts storage and distribution supporting Ford Motor Co.\u2019s South Side Chicago plant.<\/p>\n\n\n\n<p>In another notable transaction, Link Logistics renewed <a href=\"https:\/\/www.commercialsearch.com\/news\/link-logistics-lands-300-ksf-chicago-area-lease-renewal\/\">Axis Warehouse &amp; Logistics\u2019 lease<\/a> at 500 Country Club Drive in Bensenville, Ill. The full-building commitment, spanning more than 300,000 square feet, was the largest lease renewal in the O\u2019Hare submarket in the first half of 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Find out which of the market&#8217;s metrics are staying strong, according to Yardi Matrix.<\/p>\n","protected":false},"author":3014,"featured_media":1004772779,"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-1004795894","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":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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She has been with the company for almost four years and joined the CPE-MHN team in 2022. Diana writes stories on different topics, mainly focusing on the affordable, senior, office and retail markets. 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