Chicagoland’s industrial market faced challenges in 2025

Tariffs and changing trade policies further complicated a market that was already held back by inflation. There are some positive signs for the Chicagoland industrial real estate market.

Chicagoland saw net absorption of industrial space increase by a positive 2.6 million square feet in Q3. This is welcome news. Overall year-to-date net absorption was still down 59.6% year-over-year through the end of the third quarter of 2025 (these figures are found from quarterly reports offered by CBRE and Cushman & Wakefield respectively). Many industry experts believe this decline in net absorption is attributed to the addition of new offerings being added to the market, namely 1.2 million square feet of new industrial space at Plainfield Logistics Center.

Per Cushman and Wakefield, overall industrial market vacancy rate in Chicagoland rose 40 basis points year-over-year to 4.7% through the end of the third quarter of 2025.

On a positive note, CBRE reports that tenant demand was high in 2025 and outpaced 2024 figures by 43.6% increase year-over-year.

As for new industrial projects, a new multibillion-dollar quantum computing campus called the Illinois Quantum and Microelectronic Park on the South Side is coming online. The goal is for this campus to be a national leading hub that develops the next generation of supercomputers. It is expected to create thousands of jobs.

The Lincoln Yards project, located on vacant land within the North Branch Industrial Corridor, was originally planned as a $6 billion mixed-used property by Sterling Bay. Funding issues and delays have stalled this project, but recent developments have breathed new life into this development. Bank OZK has confirmed that JDL has purchased the northern parcel of Lincoln Yards with a new vision of the project called “Foundry Park.”

While the industrial market has faced challenges in recent years, because of exciting projects coming online, there is room to be optimistic for a strong showing in 2026

Chuhak & Tecson real estate attorneys have substantial experience negotiating office leases throughout Chicagoland. Please contact us should you have questions about your industrial lease or any real estate matter. We stand ready to assist you in all your real estate issues.

Client alert authored by Kevin M. Coyne (312 855 5441) Principal, with research and drafting assistance by Katie Bendalin (312 855 4335), Law Clerk.

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.