2025 ends with signs of stabilization across the Chicago industrial market

The vacancy rate ended the year at 7.6%, up 50 basis points (bps) from one year ago. Though still above historical norms, the market avoided the kind of sharp disruptions seen in other large industrial hubs. Full-year net absorption totaled 7.3 million square feet (msf), a marked improvement over 2024’s subdued performance, driven by a combination of lease executions for functional space and opportunistic relocations. At the same time, construction deliveries declined year over year, with 14.4 msf delivered, down from 16.3 msf in 2024. While headline vacancy remains elevated, the slowdown in new supply has helped support the overall health of the market.

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