April 2025
Hiffman Releases Q1 2025 Industrial Market Report
NAI Hiffman is pleased to present the Q1 2025 Industrial Market Report, an in-depth look at statistics for the Chicago industrial real estate markets.
Chicago’s Industrial Market Steady in 2025
Chicago’s industrial market entered 2025 with stable fundamentals, as demand continues to recalibrate from the record-setting pace of 2021-2022 to a more normalized, yet still active, level of activity.
- Chicago’s industrial market entered 2025 on stable footing, with 3.5 million square feet of net absorption and vacancy holding steady at 5.9% – a sign of balanced supply and demand as the market transitions to a more measured pace.
- New leasing activity reached 8.6 million square feet in Q1, up from the second half of 2024, though average deal size has declined amid fewer big-box deliveries and a shift toward more localized distribution strategies.
- Speculative development has slowed sharply, with just 34.4% of space under construction built without a tenant in place – reflecting increased caution from developers amid rising costs and more selective tenant demand.
Contact Us
Nick Schlanger
Director of Research Services
630-691-0600
nschlanger@hiffman.com
Dan Worden
Research Analyst
630-398-8932
dworden@hiffman.com
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management and advisory firms, providing institutional and private clients exceptional customized solutions for property management, facility management, advisory services, accounting, lease administration, lender services, project management, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 250 employees nationally and an additional six hub locations and 25 satellite offices across North America.
