Brown Report: Shifting Needs Shape O’Hare Industrial

June 24, 2025 — The O’Hare industrial market is recalibrating at mid-year, as solid market fundaments intersect with shifting inventory needs, a shortage in some space categories and a more cautionary approach to business decision-making. The Illinois Real Estate Journal highlighted a recent Brown Commercial market overview that detailed the top factors driving O’Hare industrial for the last half of the year:

Demand-Supply Imbalance – Solid demand and a limited supply of small to mid-sized industrial space continue to shape activity in the O’Hare submarket. The market has seen an increase in industrial space for lease, as new construction delivers and some businesses shift their locations. Investment activity remains constrained, however.

“Investors and business owners looking for smaller spaces in the O’Hare submarket are challenged with limited options and this is constraining sales activity,” said Candace Scurto, a Vice President with Brown Commercial Group. “There is less inventory and we also are seeing a more cautious approach from business owners as they weigh the impact of tariffs and general economic conditions.”

Many submarkets, including Chicago’s O’Hare submarket, have a limited amount of available industrial space under 50,000 square feet for sale. This dynamic is good news for sellers, however. “Prices are still high so for those in a position to sell or who were planning to sell in a year or so, it’s a good time to capitalize on the current market,” said Scurto.

Tariff Policies Create Uncertainty – Many businesses are waiting for more clarity on the financial impact of tariff policies before moving ahead with ordering goods or expanding their businesses. “There is a general sense of uncertainty, similar to what we saw during the pandemic, that is slowing down some activity,” said Scurto. “This is particularly apparent in the manufacturing sector and for businesses with a significant reliance on foreign parts and goods.