November 2025
Hiffman Releases Q3 2025 Construction Pipeline Report
NAI Hiffman is pleased to present the Q3 2025 Construction Pipeline Report for industrial development in the Chicagoland market.
Construction Deliveries Hit Lowest Level Since 2017, but are Trending Upward
Chicagoland’s industrial construction market continued to exhibit signs of slowing during the third quarter of 2025, as developers delivered 575,466 square feet of new space—down significantly from 3.3 million square feet in the previous quarter. This result marks a new record low in quarterly construction deliveries since the first quarter of 2017. 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.
Since early 2017, Chicagoland has averaged 5.3 million square feet of new deliveries per quarter. With only 3.9 million square feet projected for completion in the fourth quarter of 2025, the market appears to be gradually returning to its pre-pandemic pace, driven by a more measured, demand-aligned development strategy.
Speculative vs. Build-to-Suit
- Currently, speculative construction holds an advantage in the development pipeline, with 6.5 million square feet underway compared to 5.6 million square feet of build-to-suit projects.
- Of the 47 buildings under construction, 26 are speculative and 21 are build-to-suit, reflecting a close split.
- Notably, of the seven speculative projects that broke ground in the third quarter, three are big box buildings of 200,000 square feet or more.
More information including complete submarket reports and notable projects under construction are available in the full Q3 2025 Construction Pipeline Report; click here to access the download.
Contact Us
Dan Worden
Research Analyst
630-398-8932
dworden@hiffman.com
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 four hub locations and 15 satellite offices across North America.
