Chicago's industrial scene is running hot, with tenants locking in 21.8 million square feet of new space through mid‑2026. That marks the market's strongest midyear leasing pace since 2022, as big‑box users and build‑to‑suit commitments do the heavy lifting. Vacancy is still hovering near historic lows, rents continue to edge higher, and developers are pressing ahead with new projects while occupiers chase modern logistics space.
Midyear numbers and perspective
A MarketBeat report from Cushman & Wakefield pegs new leasing at 21.8 million square feet through mid‑2026, an 11.1% year‑over‑year jump that the firm says is the highest midyear total since 2022. "Chicago’s industrial market continues to demonstrate remarkable resilience and balance," senior research manager Greg Rogalla notes in the report, pointing out that vacancy has stayed below 5% while absorption improves. Cushman singles out the big‑box segment as the main driver behind the midyear surge.
Big‑box deals drove the gain
Several headline leases helped push the numbers higher. RJW Logistics signed on for a roughly 1.2 million square foot build‑to‑suit at Karis Park West in Montgomery, according to Traded. Local government filings also show Hyundai Translead taking a sizable I‑80 corridor site in the Joliet area, tied to city tax‑abatement paperwork for a Youngs Road facility. Put together, those anchor commitments help explain why users chasing high‑clear, dock‑loaded, modern warehouse space keep crowding into the same handful of suburban corridors.
Rents, vacancy and the pipeline
Across the metro, average net asking rent reached about $7.55 per square foot, which Cushman & Wakefield reports is roughly a 0.9% gain year over year and a 2.8% increase quarter over quarter. Vacancy has held around 4.8% for three straight quarters while net absorption ticks upward. The same report notes about 5.9 million square feet of completions through mid‑2026 and roughly 13.5 million square feet still under construction, which keeps the development pipeline looking anything but sleepy.
Where growth was strongest
Rents did not rise evenly. Annual growth showed up in 15 of the market's 20 submarkets, according to figures that REJournals compiled from the Cushman report. Southern DuPage led the pack with a 58.5% jump to $12.54 per square foot, followed by Western Kane County, up 23.1% to $9.00 per square foot, and the I‑80 Corridor, up 13.3% to $7.00 per square foot. The I‑80 and I‑55 corridors also accounted for a large share of completions through the second quarter, which helps explain why rents are moving fastest on the metro's logistics edges. For occupiers that need true modern specs, those suburban lanes remain the tightest and most hotly contested submarkets.
What to watch next
The rest of 2026 hinges on whether big build‑to‑suit deals keep coming at a clip that can match speculative deliveries. If large tenants continue to sign, the current pipeline can be absorbed without a sharp bump in vacancy. Regional broker commentary, including NAI Hiffman's first quarter big‑box analysis, points to ongoing appetite from third‑party logistics firms and retailers for large, modern facilities. That tug of war between sturdy big‑box demand and an active construction pipeline is the stat line Chicago landlords and tenants are likely to track all the way into 2027.
