What’s driving Lake County industrial?

Feb. 26, 2026 — The Lake County industrial market is experiencing solid growth and strong demand. Here’s a breakdown of the key trends driving activity in this Chicago submarket:

• Strong tenant demand.  Lake County is home to many industrial distribution and manufacturing businesses that are drawn to the strategic access to Interstate 94 and the Port of Chicago and its extensive intermodal system. Major occupiers include Medline Industries (2.2 MSF of space); Abbvie (712K SF of space) and Amazon (1.1 MSF of space).
• Market and economic uncertainty. Businesses continue to face challenges with market uncertainty and the impact of tariffs, particularly on manufacturing and import-focused businesses.  While some businesses are factoring in the added costs of tariffs and other market shifts into their business projections, they are challenged with managing costs across suppliers and production partners.
• Interest rates. The “higher for longer” interest rate environment has become part of the business mindset today, yet higher rates continue to impact business financing and property sales. Some commercial real estate investors continue to wait on the sidelines instead of moving ahead with property transactions.
• Challenges with space planning. Many companies took additional space during the pandemic and are now deciding whether to expand, downsize or take a short-term renewal. “Each approach has its challenges right now and companies are having to think through multiple scenarios before making decisions on their space allocations,” notes Brown Commercial Group Broker Collin Tyrrell. “Many companies are looking to expand so they don’t want to be stagnant for too long. Those that can find creative solutions and embrace the uncertainty will fare the best in today’s environment.”

The outlook for the North Lake County submarket remains positive but demand is expected to slow in the coming quarters. This could lead to a slight increase in vacancy, but the limited supply of new construction in the pipeline is expected to moderate any increases. There is 1.68 million square feet of proposed construction announced for the next two years, however.