Speculative industrial construction fueling growth
Jan. 12, 2026 — Chicago’s industrial supply continues to grow, with speculative industrial construction capturing a notable part of the market. A review of Q4 2025 research shows there are 43 industrial projects underway, totaling 13.2 million square feet (MSF), the highest level in two years. Speculative development accounts for slightly over half of those projects in progress, a sign that developers have renewed confidence in the market’s long-term demand drivers. With speculative development on the rise, however, vacancy is expected to increase slightly as these projects complete in 2026.
Chicago Industrial Rents Rebounding
Chicago industrial rents are rebounding, with asking rents increasing 1.4% to $8.64 per square foot at the end of 2025. This marks a period of steady demand for industrial space, despite market uncertainty. Rents have grown at a modest, 5.5% pace over the past year.
As speculative industrial construction increases, here are other market indicators, according to CBRE research:
- The availability rate for Chicago industrial space hit 8.9% in Q4 2025, up 40 bps quarter-over-quarter.
- Industrial spaces under 100K SF had the lowest availability rate at 5.4%
- Large blocks of space from 500K SF to 749K SF had the highest availability rate (10/9%)
- Sublease availability declined year-over-year and totaled about 11 million square feet (MSF) at year-end, down from 15.8 MSF 12 months earlier.
A look at Chicago’s key industrial submarkets shows the O’Hare market and City North with asking rents of $11.22 per square foot. These elevated rates in core and infill locations showcase the strong competition among tenants looking for modern, well-located facilities.
For more on space availability, check out Brown Commercial’s industrial listings.
