Chicago industrial: Strong and Steady for 2026
Jan. 8, 2026 – Strong and steady is the forecast for Chicago industrial leasing in 2026 as the market stabilizes and new construction slows. A review of market research shows that sustained tenant demand carried the market to a 4.62% vacancy rate at the end of 2025, down slightly from the previous year. The rate is down slightly from 4.70% at the end of 2024 — and well below the 5.25% recorded in 2023. Here’s a quick take on the Chicago industrial market at year-end, according to Colliers data.
- Absorption — Net absorption totaled 11.2 million square feet at year- end, a notable decline over previous years.
- Leasing — Total leasing volume reached 40.5 million square feet (msf), up dramatically from 30.4 msf in 2024. There were 127 new leases signed in Q42025, reaching a total of 12.5 msf. This was the strong quarter for leasing since 2023 and was also notable because it was seen across all sizes. Industrial spaces in the 100,000 to 200,000 range, for example, saw strong demand, with 53 leases signed in 2025, an increase from 36 in 2024, according to Colliers.
- Construction — Chicago’s industrial market grew by just 11 msf, the lowest annual amount since 2018. The pipeline of projects in the works totaled 11.4 msf spread across 43 building. Completed speculative construction totaled just 5.2 msf for 2025, the lowest annual total since 2014. The yearly total of new speculative development starts reached 8.7 msf, three times the amount recorded throughout 2024.
The outlook for Chicago industrial in 2026 is strong, with steady leasing expected to fill the existing supply. The vacancy rate is expected to remain stable due to limited speculative development and continued demand for modern facilities in strong submarkets.
