The Chicago industrial market retained its ranking as the second largest in the country as of the middle of 2025, according to the latest research from Lee & Associates.
Lee & Associates released its Mid-Year 2025 Industrial Market Report, exploring the market fundamentals for the 18 most active Chicago-area submarkets.
According to the report, the Chicago industrial market is the second largest in the country with more than 1.4 billion square feet of existing inventory. The region’s unmatched interstate and intermodal connectivity has insulated it from some of the volatility other regions have experienced.
“National headlines are being dominated by tariffs, interest rates and other macroeconomic conditions,” said Brandon Pappas, vice president of data analytics for Lee & Associates of Illinois, in a statement. “However, Chicago’s industrial fundamentals remain some of the most stable and strategically positioned in the country.”
Key findings from the report include:
- Net absorption reached positive 4.6 million square feet, signaling a decisive rebound that reinforces investor confidence
- The I-88 Corridor recorded more than 607,000 square feet of absorption in the second quarter, which is more than 8 times greater than the prior quarter
- Elevated availability in high-growth corridors like I-55 and I-80/Joliet reflects a need to absorb excess speculative product built in the past few years – not a lack of demand
- Construction is active with 10.8 million square feet of projects underway across all submarkets. New deliveries for the quarter totaled 4.3 million square feet.
- Investment sale activity is still slow, with just 1.6% of the total inventory trading hands year-to-date
Chicago’s centrality, scale, and structural demand drivers continue to reinforce its position as a cornerstone of institutional industrial investment.
“As occupiers remain disciplined and developers target high-conviction sites, Chicago’s industrial market is not just weathering macroeconomic shifts—it’s adapting, evolving, and laying the groundwork for future outperformance,” Pappas said.
Click here to download Lee & Associates’ full Mid-Year 2025 Chicago Industrial Report.
