Mid-year industrial construction overview
June 18, 2025 – Industrial construction continues to expand at a steady pace in the O’Hare submarket, with 825,294 square feet delivered over the past eight quarters. Moving forward, industrial construction is projected to slow to nearly 500,000 square feet during the next eight quarters. Most of that space is earmarked for data center development, a market segment that has seen significant growth to support business and consumer data needs.
According to CoStar Research at mid-year, Prime Data Center, a global provider of hyperscale and wholesale data centers, is building its three-property, 1- million-square-foot data center campus in Elk Grove Village, IL, part of the O’Hare submarket. Prime states on its website that Elk Grove Village is one of the fastest-growing US markets due to lucrative financial incentives such as tax breaks. Chicago also offers easy access to reliable and low-cost power as well as strong connectivity.
With An overall vacancy rate of 4.6%, the O’Hare industrial market is expected to attract additional businesses to the area. The new facilities typically feature amenities such as 34′-plus clear heights and heavy power capability. The submarket is also recording negative 1.1 million square feet of absorption, creating a challenging dynamic that may exacerbate the supply-demand scenario.
The industrial construction has its challenges heading into the second half of 2025. CoStar notes that many tenants are cautious about committing to long-term space obligations. And, funding sources have turned off their capital streams for industrial and other commercial development across most parts of the country. Contact the Brown Commercial team for help navigating the O’Hare industrial market.
