**Chicago’s Industrial Market Remains Resilient in 2025**
Chicago’s industrial real estate sector remained robust throughout 2025, according to a recent report by Avison Young.
Leasing activity stayed strong, with 50.1 million square feet transacted during the year. A key highlight was the signing of seven new leases exceeding 750,000 square feet in total—an increase from five similar leases in 2024. Notably, only two of those in 2024 were renewals, indicating growing demand for industrial space. Developers are increasingly confident as demand for large-format facilities remains strong, and the interest rate environment shows signs of stability.
The market’s vacancy rate held steady at 6.1%, a result of both consistent leasing activity and controlled supply growth over the past three years. Development has accelerated, with 12.6 million square feet currently under construction and 10.5 million square feet completed and delivered in 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.”
**Upcoming Industry Event**
Don’t miss the keynote interview with Carter Andrus, Chief Operating Officer of Prologis, at Connect Industrial Midwest. The event will take place Tuesday afternoon, March 10, 2026, at Joe’s Live in Rosemont, Illinois.
