Chicago’s industrial market continued to outperform many markets across the United States in the first quarter, according to the latest research from Avison Young.
How solid has the Chicago-area industrial market been? Avison Young reported that this market’s overall vacancy held steady at 6.1% in the first quarter, while big box vacancy recorded a notable decline in vacancy, falling to 7.2%.
And that wasn’t the only bit of good news. Avison Young said that industrial leasing activity started the year with momentum, totaling 17.2 million square feet in the Chicago area in the first quarter of the year.
This figure included 10 industrial transactions of more than 700,000 square feet. As Avison Young says, this showcases the depth of tenant demand in the Chicago industrial sector. It also highlights Chicago’s endurance as one of the top industrial markets in the United States.
“Chicago’s industrial market remains on solid footing in early 2026, demonstrating resilience amid ongoing economic headwinds,” said Kathleen Cavanaugh, director of market intelligence for industrial for the Central Region for Avison Young, in a written statement.
“Vacancy remains stable in the first quarter as big‑box availability continued to tighten, while strong early‑year leasing activity highlights sustained tenant demand,” Cavanaugh said. “Consistent absorption and limited new supply are supporting rent growth and reinforcing Chicago’s position as one of the nation’s most competitive industrial markets.”
The big-box vacancy numbers were especially impressive, with Avison Young reporting that vacancy in Chicago-area industrial properties of more than 500,000 square feet decreased 110 basis points on a year-over-year basis in the first quarter.
That leasing activity of more than 17.2 million square feet in the first quarter is also significant, representing an increase of 22.7% from the first quarter of 2025.
