Report: Chicago Industrial Market Sees Uptick in Leasing

Chicago’s industrial sector saw a significant rebound in Q2 2025, as strong tenant demand drove new leasing activity to 10.7 million square feet—the highest quarterly total in over a year. This momentum pushed the vacancy rate down to 4.67%, a 12-basis-point drop from Q1, according to a recent report by Colliers.

Net absorption surged to 5.1 million square feet, fueled by robust leasing and 2.7 million square feet of build-to-suit completions. Despite the leasing uptick, construction activity slowed. The active pipeline shrank to 9.3 million square feet, marking the fourth consecutive quarterly decline and the lowest level since 2018.

Average asking rents continued to climb, reaching $8.20 per square foot, up from $8.05 a year ago. Colliers forecasts that the Chicago industrial market will remain stable throughout the rest of 2025, driven by steady tenant demand and a slowdown in construction completions.