July 2025
Hiffman Releases Q2 2025 Industrial Market Report
NAI Hiffman is pleased to present the Q2 2025 Industrial Market Report, an in-depth look at statistics for the Chicago industrial real estate markets.
Chicago’s Industrial Market Continues 2025 on Stable Footing Amid Evolving Demand
Chicago’s industrial market continued to display a steady rate of growth in the second quarter of 2025, as demand continues to recalibrate from the record-setting pace of 2021 – midyear 2023 to a more normalized level of activity.
- Chicago’s industrial market continued to see steady growth in Q2 2025, with 1.0 million square feet of net absorption and vacancy holding steady at 6.4% – a sign of balanced supply and demand as the market transitions to a more measured pace.
- New leasing activity reached 12.1 million square feet in Q2, up from the first quarter, though average deal size has declined since the first half of 2024 amid fewer big-box deliveries and a shift toward more localized distribution strategies.
- Speculative development exhibited an uptick, with 50.5% of space under construction built without a tenant in place – reflecting growing confidence from developers despite rising costs and more selective tenant demand.
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 six hub locations and 25 satellite offices across North America.
