October 2026
Hiffman Releases Q3 2026 Construction Report
NAI Hiffman is pleased to present the Q3 2026 Construction Pipeline Report, our firm’s in-depth look at statistics for the Chicago metropolitan commercial real estate markets.
Industrial Construction – Pipeline & Deliveries
- Chicago’s industrial construction pipeline reached 16.9 million square feet across 46 active developments, up from 12 million square feet in Q3 2025.
- More than 5 million square feet of industrial space was delivered during the third quarter, bringing year-to-date completions to approximately 9.2 million square feet.
- Total industrial deliveries are projected to reach 11.7 million square feet by year-end 2026.
- The I-55 Corridor led all submarkets in year-to-date deliveries, with approximately 2 million square feet completed.
- New speculative developments are increasingly concentrated in the 150,000- to 250,000-square-foot range, reflecting continued occupier demand for modern, mid-sized industrial facilities.
Under Construction – Speculative vs. Build-to-Suit
- Build-to-suit developments accounted for 58.1% of active industrial construction, while speculative projects represented the remaining 41.9%.
- The Chicago market had 30 speculative developments underway at the end of Q3, with most ranging from 100,000 to 200,000 square feet.
- Build-to-suit construction was concentrated in the I-80/Joliet Corridor (2.3 million SF), DeKalb County (2.1 million SF) and Northwest Indiana (1.8 million SF).
- Larger build-to-suit projects continued to dominate development activity, with seven projects exceeding 500,000 square feet.
- Construction began on a nearly 700,000-square-foot build-to-suit facility for hand2mind in Vernon Hills, redeveloping the former American Hotel Register property.
The Chicago Industrial Market
- Industrial leasing activity reached 17.1 million square feet in Q3, up from 9.6 million square feet during the same period in 2025.
- Net absorption totaled approximately 8.2 million square feet, compared with 7.5 million square feet a year earlier.
- Overall industrial vacancy remained unchanged at 5.8%, despite continued deliveries and tenant movements.
- The I-55 Corridor led quarterly leasing activity with 2.9 million square feet, while the O’Hare submarket recorded the highest number of transactions at 34.
- Demand remained strong for modern industrial facilities offering convenient access to highways, rail networks and major population centers.
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.
