A driving force behind Chicago’s industrial sector is its centralized location and unparalleled rail and highway connectivity as the only U.S. city to contain six Class 1 railroads. Chicago’s industrial market is strong, with 25.3 million of direct net SF positively absorbed over the past 12 months. This level of demand formation is still greater than the high set for Chicago in 2006 (24 million SF) and two times greater than the average levels seen for the metro’s all time average. Leasing activity metro wide took a sizable dip each quarter since 22Q2, and this trend is continuing into 2023.
In March 2023, the U.S. Surface Transportation Board approved Canadian Pacific’s $31 billion acquisition of the Kansas City Southern. Upon approving the deal, the regulator stated that the new single-line service would shift about 64,000 truckloads a year to rail from the roads, potentially enhancing safety and reducing carbon emissions. By mid-year 2023, these infrastructure improvements were already seen to bolster the demand fundamentals of the Joliet Area. In fact, by the end of 23Q3, the Joliet Area is expected to record a year-over-
year absorption bump from 4.1 million SF to 6.3 million SF. Also improving freight rail service is the $380 million railroad project called the Forest Hill Flyover, which broke ground on Chicago’s South Side during 22Q4. Its purpose is to eliminate one of the most congested rail chokepoints in the Chicago area, where over 8,500 hours of passenger and freight delays are logged per year.
New industrial supply is still coming on line at a robust pace during the second half of 2023. These projects were approved by local municipalities when leasing volume was setting records throughout the first three-quarters of 2022. Approximately 23.4 million SF of new space came to market over the past year, with another 36.0 million SF of industrial space currently under
construction in Chicago.
“The current industrial real estate market in Chicago is showing some signs of headwinds due to higher cost of capital, however companies are still taking strides to grow and right size their real estate needs in a time of economic ambiguity, albeit more cautiously than in previous years.”
– Matt Garland, Senior Vice President.
Top Overall Chicago Industrial Real Estate Lease Statistics
12 Month Deliveries (Square Feet): 27. million (26.5 million in Q1 2023)
12 Month Net Absorption (Square Feet): 25.3 million (27.1 million in Q1 2023)
Vacancy Rate: 4.0% (4.0% in Q1 2023)
12 Month Rent Growth: 8.0% (8.9% in Q1 2023)
Top Chicago Industrial Leases (Past 12 Months)
1) Property: 325 State Route 31
Submarket: I-88 West
Leased SF: 1,307,420
Quarter: Q3 2022
Tenant: US Medical
Tenant Rep: Cushman & Wakefield
Leasing Rep: Cushman & Wakefield
2) Property: SWC Millsdale & Route 53
Submarket: Joliet Area
Leased SF: 1,218,120
Quarter: Q1 2023
Tenant: Target
Tenant Rep: N/A
Leasing Rep: CBRE
3) Property: 2250 Berens Ct
Submarket: Joliet Area
Leased SF: 1,159,200
Quarter: Q2 2023
Tenant: Unilever
Tenant Rep: N/A
Leasing Rep: Cushman & Wakefield
4) Property: 5000 183rd St
Submarket: Near South Cook
Leased SF: 1,033,450
Quarter: Q1 2023
Tenant: Solo Cup
Tenant Rep: Newmark
Leasing Rep: Cushman & Wakefield
5) Property: 30350 S Graaskamp Blvd
Submarket: Joliet Area
Leased SF: 1,019,200
Quarter: Q3 2022
Tenant: PrimeSource
Tenant Rep: N/A
Leasing Rep: CBRE
Top Chicago Industrial Sales Statistics (Past 12 Months)
Sales Comparables: 1,197 (1,392 in Q1 2023)
Average Cap Rate: 7.7% (7.9% in Q1 2023)
Average Price/ SF: $82 ($80 in Q1 2023)
Average Vacancy at Sale: 4.8% (4.9% in Q1 2023)
Top Chicago Industrial Property Sales
1) Property: Wayfair (1040 W Renwick Rd)
*Rating: 5
Year Built: 2022
Building SF: 1,200,420
Vacancy: 0%
Price (PSF): $131,906585 ($110)
Cap Rate: Not Listed
2) Property: 3851 Youngs Rd
*Rating: 5
Year Built: 2013
Building SF: 1,006,040
Vacancy: 0%
Price (PSF): $104,440,000 ($104)
Cap Rate: 3.7%
3) Midpoint Distribution 801 (801 Midpoint Rd)
*Rating: 5
Year Built: 2008
Building SF: 965,183
Vacancy: 0%
Price (PSF): $75,077,411 ($78)
Cap Rate: Not Listed
4) Butterfield 2865 (2865 Duke)
*Rating: 5
Year Built: 2017
Building SF: 954,720
Vacancy: 0%
Price (PSF): $71,310,382 ($75)
Cap Rate: Not Listed
5) Crate & Barrel (1860 W Jefferson Ave)
*Rating: 4
Year Built: 1989
Building SF: 827,268
Vacancy: 0%
Price (PSF): $61,790,679 ($75)
Cap Rate: Not Listed
*Rating is 1-5, 5 being the best
Chicago Industrial Construction Projects Statistics
Properties Currently Under Construction: 117
Total Size: 40.8M SF in Q1 2023)
Percent of Inventory: 3.2% in Q1 2023)
Preleased: 29.2% in Q1 2023)
Top Chicago Industrial Projects Under Construction
1) Property: Facebook Dekalb Data Center (Gurler Rd)
Rating*: 5
Building SF: 2,400,000
Stories: 1
Completion: Q2 2023
Developer/ Owner: N/A / Meta Platforms, Inc.
2) Property: Minooka Distribution Center (11075 McLinden Rd)
Rating*: 5
Building SF:1,500,800
Stories: 1
Completion: Q4 2023
Developer/ Owner: Molto Properties / Walmart Inc.
3) Property: #2 (9850 Mississippi St)
Rating*: 4
Building SF: 1,380,000
Stories: 1
Completion: Q3 2023
Developer/ Owner: N/A / Nancy Sanders
4) Property: Third Coast Intermodal Hub (SWC Millsdale & Route 53)
Rating*: 5
Building SF: 1,281,120
Stories: 1
Completion: Q2 2023
Developer/ Owner: NorthPoint Development / N/A
*Rating is 1-5, 5 being the best
Top I-88 West Corridor Industrial Lease Statistics (Past 12 Months)
12 Month Deliveries (Square Feet): 1.4 million (431K in Q1 2023)
12 Month Net Absorption (Square Feet): 7.9% (2.2 million in Q1 2023)
Vacancy Rate: 3.1% (2.4% in Q1 2023)
12 Month Rent Growth: 7.9% (8.8% in Q1 2023)
4 & 5 Star Industrial Properties Leasing Activity in I-88 West Corridor (Past 12 Months)
1) Property: 2800 W Diehl Rd
Rating: 5
Deals: 1
Square Feet: 392,973
Vacancy: 0%
Net Absorption: 392,973
2) Property: 175 Ambassador Dr
Rating: 4
Deals: 1
Square Feet: 306,000
Vacancy: 73.9%
Net Absorption: 306,000
3) Property: Prologis Aurora (701 Bilter Rd)
Rating: 5
Deals: 1
Square Feet: 162,018
Vacancy: 60%
Net Absorption: 162,018
Top South I-55 Corridor Industrial Lease Statistics (Past 12 Months)
12 Month Deliveries (Square Feet): 2.6M (1.8M in Q1 2023)
12 Month Net Absorption (Square Feet): 1M (2.2M in Q1 2023)
Vacancy Rate: 3.1% (3.4% in Q1 2023)
12 Month Rent Growth: 8.7% (9.3% in Q1 2023)
4 & 5 Star Industrial Properties Leasing Activity in South I-55 Corridor (Past 12 Months)
1) Property: 333 Gibraltar Dr
Rating: 4
Deals: 2
Square Feet: 451,460
Vacancy: 15.6%
Net Absorption: 225,730
2) Property: Carlow XIX (Rodeo Dr)
Rating: 4
Deals: 1
Square Feet: 220,620
Vacancy: 0%
Net Absorption: 220,620
3) Property: Bolingbrook Distribution Center (1501 Remington Blvd)
Rating: 5
Deals: 1
Square Feet: 191,290
Vacancy: 0%
Net Absorption: 168,418
Top O’Hare Industrial Lease Statistics (Past 12 Months)
12 Month Deliveries (Square Feet): 1.9M (1.8M in Q1 2023)
12 Month Net Absorption (Square Feet): 839K (1.4M in Q1 2023)
Vacancy Rate: 3.3% (2.9% in Q1 2023)
12 Month Rent Growth: 8.2% (8.9% in Q1 2023)
4 & 5 Star Industrial Properties Leasing Activity in South O’Hare (Past 12 Months)
1) Property: 1401 Devon Ave
Rating: 5
Deals: 1
Square Feet: 307,378
Vacancy: 0%
Net Absorption: 307,378
3) Property: 700 Golf Ln
Rating: 4
Deals: 1
Square Feet: 144,704
Vacancy: 20%
Net Absorption: 144,704
3) Property: Building 8 (595-601 Supreme Dr)
Rating: 4
Deals: 2
Square Feet: 106,692
Vacancy: 60%
Net Absorption: 106,692
Top I-88 West Industrial Sales Statistics (Past 12 Months)
Sales Comparables: 69 (87 in Q1 2023)
Average Cap Rate: 7.9% (9.1% in Q1 2023)
Average Price/ SF: $78 ($79 in Q1 2023)
Average Vacancy at Sale: 6.1% (8.0% in Q1 2023)
Top I-88 West Industrial Real Estate Property Sales
1) Property: Butterfield 2865 (2865 Duke)
*Rating: 5
Year Built: 2017
Building SF: 954,720
Vacancy: 0%
Price (PSF): $71,310,382 ($75)
Cap Rate: Not Listed
2) Property: Crate & Barrel (1860 W Jefferson Ave.)
*Rating: 4
Year Built: 1989
Building SF: 827,268
Vacancy: 0%
Price (PSF): $61,790,679 ($75)
Cap Rate: Not Listed
Top South I-55 Industrial Sales Statistics (Past 12 Months)
Sales Comparables: 39 (55 in Q1 2023)
Average Cap Rate: 8.0%
Average Price/ SF: $111 ($102 in Q1 2023)
Average Vacancy at Sale: 5.2% (3.7% in Q1 2023)
Top South I-55 Industrial Real Estate Property Sales
1) Property: Wayfair (1040 W Renwick Rd)
*Rating: 5
Year Built: 2022
Building SF: 1,200,420
Vacancy: 0%
Price (PSF): $131,906,585 ($110)
Cap Rate: Not Listed
2) Property: Airport Logistics Center 1 (950 W Renwick Rd)
*Rating: 5
Year Built: 2019
Building SF: 543,780
Vacancy: 0%
Price (PSF): $59,752,556 ($110)
Cap Rate: Not Listed
Top O’Hare Industrial Sales Statistics (Past 12 Months)
Sales Comparables: 122 (132 in Q1 2023)
Average Cap Rate: 6.6% (6.1% in Q1 2023)
Average Price/ SF: $89 ($100 in Q1 2023)
Average Vacancy at Sale: 1.7% (1.9% in Q1 2023)
Top O’Hare Industrial Real Estate Property Sales
1) Property: 1455 W Thorndale Ave
*Rating: 3
Year Built: 1992
Building SF: 251,909
Vacancy: 0%
Price (PSF): $36,000,000 ($143)
Cap Rate: 5.3%
2) Property: Data Center (1717 Busse Rd)
*Rating: 4
Year Built: 2004
Building SF: 253,000
Vacancy: 0%
Price (PSF): $18,602,434 ($74)
Cap Rate: Not Listed
3) Property: 751 N Rohlwing Rd
*Rating: 3
Year Built: 1980
Building SF: 109,000
Vacancy: 0%
Price (PSF): $11,800,000 ($108)
Cap Rate: Not Listed
I-88 West Industrial Construction Projects Statistics
All-Time Annual Average Square Feet: 1,361,252 (1,329,980 in Q1 2023)
Delivered SF (Past 8 Qs): 3,408,550 (2,204,978 in Q1 2023)
Delivered SF (Next 8 Qs): 3,459,000 (4,377,432 in Q1 2023)
Proposed SF (Next 8 Qs): 4,866,026 (4,766,026 in Q1 2023)
Top I-88 West Industrial Projects Delivered
1) Property: 4275 Ferry Rd
Rating*: 4
Building SF: 270,934
Stories: 1
Completion: Q2 2023
Developer/ Owner: Logistics Property Company, LLC
2) Property: Rod Baker Ford Dealership (13921 S Route 59)
Rating*: 3
Building SF: 55,000
Stories: 1
Completion: Q2 2023
Developer/ Owner: N/A / Ford
3) Property: 2200 Sullivan Rd
Rating*: 4
Building SF: 356,462
Stories: 1
Completion: Q2 2023
Developer/ Owner: Panattoni Development
Top I-88 West Industrial Projects Under Construction
1) Property: Facebook DeKalb Data Center (Gurler Rd)
Rating*: 5
Building SF: 2,400,000
Stories: 1
Completion: Q3 2023
Developer/ Owner: N/A / Meta Platforms, Inc.
South I-55 Industrial Construction Projects Statistics
All-Time Annual Average Square Feet: 2,767,488 (2,717,900 in Q1 2023)
Delivered SF (Past 8 Qs): 5,058,975 (3,568,078 in Q1 2023)
Delivered SF (Next 8 Qs): 2,777,040 (3,629,988 in Q1 2023)
Proposed SF (Next 8 Qs): 1,339,294 (2,526,350 in Q1 2023)
Top South I-55 Industrial Projects Delivered
1) Property: Airport Logistics Center II (900 W Renwick Rd)
Rating*: 5
Building SF: 347,760
Stories: 1
Completion: Q4 2022
Developer/ Owner: N/A / Prologis, LP.
2) Property: 555 S Pinnacle Dr.
Rating*: 5
Building SF: 795,965
Stories: 1
Completion: Q2 2023
Developer/ Owner: Panattoni / Joilet Regional Port District
3) Property: I-355 & 75th St
Rating*: 4
Building SF: 100,450
Stories: 1
Completion: Q3 2022
Developer/ Owner: Molto Properties
Top South I-55 Industrial Projects Under Construction
1) Property: Building 1
Rating*: 4
Building SF: 627,602
Stories: 1
Completion: Q3 2023
Developer/ Owner: Molto Properties
O’Hare Industrial Construction Projects Statistics
All-Time Annual Average Square Feet: 718,232 (713,644 in Q1 2023)
Delivered SF (Past 8 Qs): 2,611,386 (2,363,818 in Q1 2023)
Delivered SF (Next 8 Qs): 162,500 (720,581 in Q1 2023)
Proposed SF (Next 8 Qs): 2,550,938 (2,469,537 in Q1 2023)
Top O’Hare Industrial Projects Delivered
1) Property: Bridge Point Elk Grove I
Rating*: 4
Building SF: 147,066
Stories: 1
Completion: Q2 2023
Developer/ Owner: Bridge Industrial
2) Property: Bridge Point Elk Grove II
Rating*: 4
Building SF: 60,834
Stories: 1
Completion: Q2 2023
Developer/ Owner: Bridge Industrial
1) Property: 720 E Green St
Rating*: 4
Building SF: 83,693
Stories: 1
Completion: Q2 2023
Developer/ Owner: Prologis, LP
Top O’Hare Industrial Projects Under Construction
1) Property: 1460 W Thorndale Ave
Rating*: 4
Building SF: 132,500
Stories: 1
Completion: Q4 2023
Developer/ Owner: N/A
Data Sources: Cawley Chicago & CoStar