July 2026
Hiffman Releases Q2 2026 Construction Pipeline Report
NAI Hiffman is pleased to present the Q2 2026 Construction Pipeline Report, our firm’s in-depth look at statistics for the Chicago metropolitan commercial real estate markets.
Market Snapshot
- Market Size: 1.382 billion SF
- Vacancy Rate: 5.8% (down 10 basis points quarter-over-quarter)
- Available Space: 126.7 million SF (9.2%)
- Quarterly Net Absorption: 4.07 million SF
- YTD Net Absorption: 4.05 million SF
- Space Under Construction: 21.0 million SF
- YTD New Supply: 4.1 million SF
- Q2 Leasing Activity: 11.7 million SF
- YTD Leasing Activity: 23.2 million SF
Notable Submarket Leaders
- I-80/Joliet Corridor
- 4.26 million SF under construction (highest in the region)
- Nearly 3.0 million SF leased during Q2
- I-55 Corridor
- Nearly 2.0 million SF delivered
- 1.38 million SF currently under construction
- Southeast Wisconsin
- Highest proportional absorption (1.5% of inventory)
- I-90 Northwest
- Strong leasing and positive absorption
- Nearly 810,000 SF under construction
Pipeline & Deliveries
Major Highlights
Construction activity continues to accelerate.
Key figures include:
- 2.5 million SF delivered during Q2
- 4.1 million SF delivered year-to-date
- Approximately 10.2 million SF expected to deliver by year-end
- Construction activity has reached its highest level since 2023.
Market Trends
Demand continues shifting toward:
- 150,000–250,000 SF Class A buildings
- Flight-to-quality industrial product
- New speculative developments in:
- O’Hare
- Central DuPage
Recent leases in this size range include companies such as:
- US Foods
- CODA Resources
- TricorBraun
- Rehlko
- Warmies
- Claire’s Essentials.
Under Construction: Speculative vs. Build-to-Suit
Construction is now almost evenly split:
- 51.1% Build-to-Suit
- 48.9% Speculative
Highlights
- 45 speculative projects underway
- 21 new speculative projects began during Q2
- Approximately 4.3 million SF of new speculative construction started
Largest construction concentrations:
- I-80/Joliet Corridor
- Northwest Indiana
- DeKalb County
Seven build-to-suit projects exceeding 500,000 SF are currently underway, the largest concentration in today’s market.
Chicago Market (Supply vs. Demand)
The report characterizes Q2 as another quarter of sustainable growth.
Demand Highlights
- Net absorption quadrupled year-over-year.
- Vacancy fell to 5.8%.
- Leasing activity remained above 11 million SF.
Largest lease:
- RJW Logistics
- 1.2 million SF build-to-suit
- Karis Park West (Montgomery)
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.
