Chicago Industrial Market Report

Metro posts the country’s strongest net absorption. In 2024, the greater Chicago region is anticipated to welcome over 16.4 million square feet of commitments to distribution and warehouse facilities alone. High levels of tenant demand from wholesale distributors, packaging companies and logistics providers reflect Chicago’s status as one of the nation’s most active freight hubs. An estimated 50 percent of all intermodal trains in the U.S. pass through the metro, with air cargo volumes also exceeding historic norms in recent years at the Rockford and Chicago O’Hare international airports. These channels of freight activity are expected to help Chicago achieve the strongest net absorption among major U.S. markets this year, as the industrial sector normalizes on a national basis. While the country’s vacancy rate rises by 80 basis points in 2024, Chicago will be one of only three major markets to report a dip in the metric.