Chicago Industrial Market Report

Skyrocketing demand unlikely to let up. Chicago has played a key spot in the domestic supply chain and the metro's role is increasingly essential amid global bottlenecks. Firms view the market as a central location capable of servicing many consumers leading to the absorption of 34 million square feet last year. O'Hare International Airport has seen rising activity corresponding with growing e-commerce sales aiding demand for nearby properties and slashing vacancy in the submarket 470 basis points last year to 2.8 percent. Developers have ramped up construction but a lack of buildable land in interior areas has pushed projects farther from the core. This year construction is concentrated in Kenosha and the Interstate 55 Corridor near Joliet. The latter has seen net absorption outpace completions by 9 million square feet since the start of 2019 resulting in a 460-basis-point vacancy retreat over the same period. Kenosha recorded a 330-basis-point drop since 2020 and provides tenants access to both the Chicago and Milwaukee metros.