Chicago’s commercial real estate scene in 2025 did not exactly roar, but it did not roll over either. The market squeezed out a modest gain as apartment deals, along with steady industrial and retail trades, nudged year-end sales volume higher. Dollar totals still sat well below the boom years, yet the city’s mix of dependable sectors helped it avoid the sharper pullbacks seen in many other U.S. metros.
Total investment volume in the Chicago metro rose by roughly 3% last year, with a rebound in multifamily sales doing most of the heavy lifting. According to CoStar, retail and industrial activity held fairly steady while office trading lagged, leaving overall volume up on the year but still well under past peak levels.
Multifamily Leads The Charge
Apartment properties dominated the top of the sales charts. Multiple nine-figure multifamily trades closed in the back half of 2025 in Cook County, helping define the year’s marquee transactions. The Real Deal’s year-end tally shows that multifamily accounted for eight of the 10 priciest commercial sales in the county, with those blockbuster apartment buys sharing the spotlight with a $270 million industrial portfolio that punctuated the market.
Industrial And Retail Kept Deals Flowing
While trophy assets were in shorter supply, big industrial dispositions and active suburban retail trading kept mid-market deal flow humming. Research from CBRE notes that Chicago added data center capacity and logged multifamily rent gains in 2025, even as the pipeline for new apartment construction stayed unusually thin. That combination helped existing properties look more attractive to investors who were wary of taking on development risk.
Investors Are Picking Their Spots
With money more expensive and lenders choosier, buyers focused on assets they believed they could quickly improve rather than betting on ground-up construction. Industry observers told Bisnow that value plays and flight-to-quality strategies are front and center. “Actually, right now, I’m trying to buy existing buildings and do renovations of the property,” one investor told Bisnow, summing up the prevailing mood.
What To Watch In 2026
The modest uptick in 2025 leaves Chicago positioned for selective opportunities in 2026, rather than a free-for-all. Market watchers say the outlook will largely hinge on interest rates, lender behavior and that notably thin multifamily construction pipeline. According to CBRE, investors are expected to keep circling multifamily along with higher-quality industrial and data center assets, while broader momentum will depend on capital costs and whether rent strength holds up.
