April 2026
Hiffman Releases Q1 2026 Construction Pipeline Report
NAI Hiffman is pleased to present the Q1 2026 construction pipeline report, our firm’s in-depth look at statistics for commercial real estate construction in the Chicago metropolitan area.
Overall Market Performance
- 14.9M SF under construction—up quarter-over-quarter, but more targeted than ever
- Spec vs. build-to-suit is nearly even (53% / 47%)—a clear signal developers are de-risking pipelines
- Leasing activity surged to ~11.9M SF—a strong start to the year
- Vacancy tightened to 5.9% as tenants continue to absorb space
- Deliveries slowed—not due to weakness, but because the market is catching up to prior supply
Construction Pipeline & Deliveries
- 11 new projects broke ground in Q1, signaling continued developer confidence
- Large-scale developments include a 788K SF speculative facility in Plainfield and a 1.2M SF build-to-suit for John Deere in Northwest Indiana
- Just over 1.5M SF delivered in Q1, down significantly from ~3.9M SF the previous quarter
- Reduced deliveries are partly seasonal (winter impact), with ~4.4M SF expected in Q2
- Total 2026 deliveries are projected to reach ~11.6M SF
- Development is normalizing toward pre-pandemic levels, with a more measured, demand-driven approach
- The I-55 Corridor leads 2026 deliveries to date, followed by activity in North Cook
- The pipeline reflects a shift toward precision over scale, aligning new supply more closely with tenant demand
Leasing Supply & Demand
- ~11.9M SF of leasing activity in Q1 signals a strong start to 2026, with demand holding firm
- Total construction remains elevated at 14.9M SF, continuing an upward trend
- Vacancy tightened to 5.9%, reflecting steady tenant absorption
- Net absorption remained positive (~850K SF) but slowed significantly year-over-year
- Demand is concentrated in key logistics corridors, including I-80/Joliet, North Cook, Northwest Indiana, and I-90 Northwest
- Large transactions—like Hyundai Translead’s 1.3M SF deal—continue to drive overall leasing momentum
- Tenants are prioritizing locations with strong access to transportation infrastructure and labor pools
- The development pipeline is becoming more balanced, with speculative and build-to-suit projects nearing parity
- Deliveries slowed to ~1.5M SF in Q1, indicating a moderation in new supply
- More than 5.2M SF of recently delivered speculative space remains unleased, creating near-term supply pressure
Detailed statistics and commentary are available in the Q1 2026 Construction Pipeline Report; click here to access the download. Detailed quarterly submarket reports will be available in the coming weeks.
Contact Us
Denes Juhasz
Director of Research
630-693-0645
djuhasz@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.
