Market conditions improved across the Chicago industrial sector at the start of 2026, with vacancy declining 20 basis points year over year to 7.2%, its lowest level since late 2024, according to a Savills report.

This renewed activity, combined with limited deliveries and a subdued construction pipeline, has allowed the market to work through existing availability and gradually tighten conditions. Several large-format transactions were completed this quarter, signaling renewed movement among bulk users after a period of slower decision-making.

Notably, Hyundai will invest $450 million and create nearly 2,500 new jobs to establish new trailer manufacturing facilities in Will County. Competition remains elevated for well-located infill and mid-size product. However, development activity remained relatively muted, with 9.1 million square feet under construction, well below levels observed during the recent expansion cycle. Leasing activity is expected to remain steady, with continued movement from tenants addressing near-term needs and delayed decisions.