May 2025
Hiffman Releases Q1 2025 Construction Pipeline Report
NAI Hiffman is pleased to present the Q1 2025 Construction Pipeline Report for industrial development in the Chicagoland market.
Chicagoland’s Industrial Construction Market Continues Cooling Trend
- Developers delivered 3.5 million square feet of new space – down from 4.3 million square feet in the final quarter of 2024.
- While this marks a continued slowdown, it still reflects a rebound from the record low of just 1.3 million square feet seen in Q2 2024.
- These recent delivery volumes remain a far cry from the booming second half of 2023, when the region saw an unprecedented 12.4 million and 13.1 million square feet delivered in Q3 and Q4, respectively.
Speculative vs. Build-to-Suit
- The Boom is Over – and That’s a Good Thing
After years of breakneck growth driven by e-commerce and pandemic-induced supply chain urgency, Chicagoland’s industrial construction market is entering a more intentional era. Developers are recalibrating after delivering 44 million square feet of Class A speculative space in just two years, most of it in 2023. Q1 2025 deliveries fell to 3.5M SF, signaling a return to more sustainable, demand-aligned growth.
- Big Bets are Still Being Made, They’re Just Smarter
Spec development hasn’t disappeared. Five new projects broke ground in Q1 (three of them spec), despite a more cautious climate. But here’s the kicker: every building currently under construction over 1 million square feet is a build-to-suit. Developers are still swinging for the fences but only with a tenant already on base.
Once at the forefront of national industrial construction, Chicagoland now ranks 11th in active development among major U.S. markets. Dallas, Phoenix, and Savannah are pulling ahead in completions and new construction. Still, Chicago remains the largest total industrial market in the country with 1.4 billion square feet of inventory.
Chicago’s role has shifted from aggressive expansion to strategic optimization – still powerful, but no longer the biggest builder.
More information including complete submarket reports and notable projects under construction are available in the full Q1 2025 Construction Pipeline Report; click here to access the download.
Contact Us
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 four hub locations and 15 satellite offices across North America.
