August 2026
Hiffman Releases Q2 2026 Industrial Big Box Report
NAI Hiffman is pleased to present the Q2 2026 Industrial Big Box Market Report, our latest look at leasing, vacancy, absorption and construction trends for industrial properties of at least 200,000 square feet with minimum 28-foot clear heights across the Chicago-area big box industrial market.
Overview
Chicago’s big box market showed signs of improvement during the second quarter. Vacancy declined, leasing activity remained strong and new development gained momentum as several projects broke ground.
Market Snapshot
- Market Size: 390.3 million SF
- Vacancy Rate: 8.4% (down 10 basis points quarter-over-quarter)
- Quarterly Net Absorption: 3.4 million SF
- YTD Net Absorption: 5.5 million SF
- Space Under Construction: 16.9 million SF
- 2026 New Supply: 3.1 million SF
- Q2 New Leasing Activity: 8.7 million SF
- YTD New Leasing Activity: 17.8 million SF
Leasing Activity Continues to Grow
New big box leasing activity totaled approximately 8.7 million square feet during Q2, up 32% year-over-year, bringing year-to-date leasing volume to 17.8 million square feet.
A total of 37 new leases were completed during the quarter, with third-party logistics providers continuing to rank among the market’s most active users. The I-80/Joliet Corridor led leasing activity with approximately 2.8 million square feet, followed by the I-88 Corridor with 2.1 million square feet.
Net Absorption Accelerates
Chicago’s big box market recorded 3.4 million square feet of positive net absorption during the second quarter, up from 2.1 million square feet in Q1 and substantially higher than the 737,000 square feet recorded during Q2 2025.
Major transactions contributing to current and future occupancy include:
- RJW Logistics Group: 1.2 million SF build-to-suit in Montgomery
- KeHE Distributors: 1.2 million SF in Joliet, beginning with 802,440 SF and an additional 393,300-square-foot expansion
- Hyundai Translead: 906,517 SF in Channahon
- UGL Truck: 635,000 SF in Montgomery
- Distribution 2000 Inc: 453,568 SF in Romeoville
- Custom Goods: 376,006 SF in Shorewood
- CoreCentric Solutions Inc: 286,622 SF in West Chicago
Market Outlook
Overall, Chicago industrial fundamentals remain strong heading into the second half of 2026, with well-located, high-quality Class A big box facilities continuing to outperform the broader market. Chicago’s big box industrial market is expected to see vacancy tighten over the next several quarters as recently completed leases translate into tenant occupancy.
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.
