In its second quarter metropolitan Chicago industrial report, Cushman & Wakefield highlighted a local market that remains fundamentally healthy and increasingly demand-driven. Chicago’s industrial vacancy rate held steady at 4.8% for the third consecutive quarter, while new leasing activity reached its highest mid-year total since 2022.
The Chicago industrial market recorded 21.8 million square feet (msf) of new leasing activity through mid-year 2026, representing an 11.1% increase year-over-year. Demand was led by continued strength in the big-box segment, reinforcing Chicago’s position as one of North America’s premier logistics and distribution markets.
“Chicago’s industrial market continues to demonstrate remarkable resilience and balance,” said Greg Rogalla, Cushman & Wakefield Senior Research Manager. “With vacancy holding below 5%, leasing activity reaching its strongest midyear pace in three years and absorption rebounding significantly, occupiers remain committed to the market despite ongoing economic uncertainty. The combination of healthy demand, moderate rent growth and an active but manageable development pipeline positions Chicago for continued stability through the remainder of 2026.”
Underscoring the depth of demand for modern logistics space, several major leases were finalized in Q2, including RJW Logistics’ 1.2 msf commitment at Karis Park West in Southern Fox Valley and Hyundai Translead’s lease of more than 900,000 square feet at 3538 Youngs Road, within the I-80 Corridor.
Despite ongoing deliveries, market fundamentals remained stable during the quarter. The overall vacancy rate increased just 10 basis points year-over-year, underscoring the market’s ability to absorb new supply while maintaining healthy occupancy levels.
Rental growth also continued, with the overall average net asking rent reaching $7.55 per square foot, reflecting a nearly 1% increase year-over-year and a 2.8% increase quarter-over-quarter. Development activity remained active through midyear 2026, with 6 msf of new industrial space completed and 13.9 msf still under construction, demonstrating continued developer confidence in Chicago’s long-term industrial fundamentals.
Much of this activity was concentrated in the I-80 and I-55 Corridor submarkets, which led the area in new leasing activity with 5.1 msf and 3.7 msf leased through mid-2026, respectively. The two submarkets also accounted for 59.5% of overall construction completions through Q2. Annual rent growth was reported in 15 of the region’s 20 submarkets, led by Southern DuPage (+58.5% to $12.54 psf), Western Kane County (+23.1% to $9.00 psf), and the I-80 Corridor (+13.3% to $7.00 psf).
