Industrial Construction Gains Momentum in First Quarter

From “The cranes are back? Nearly 15 million square feet of industrial construction underway in Chicago market during first quarter” – REjournals

By Dan Rafter

April 28, 2026

Nearly 15 million square feet of industrial space was under construction in the first quarter of 2026 in the Chicago market, according to the latest research from NAI Hiffman.

According to NAI Hiffman’s first quarter Construction Pipeline report for Metropolitan Chicago, 14.9 million square feet of new industrial space was under construction during the first three months of 2026 in the Chicago region. That number doesn’t signify an industrial construction boom, but it is up from the 13.6 million square feet under construction here in the fourth quarter of 2025.

How does this construction activity break down? About 7.9 million square feet, 53.2% of the total, is being built on a speculative basis while 6.9 million square feet, or 46.8%, is being constructed as build-to-suit, according to NAI Hiffman.

Construction activity in this sector is higher than it was at this time last year. NAI Hiffman reported that 11 projects totaling 3.6 million square feet broke ground in the Chicago-area industrial market during the first quarter of this year. That’s up from seven industrial products that broke ground in the first quarter of 2025.

Certain Chicago-area submarkets are more active than others, of course. NAI Hiffman reported that 2.4 million square feet of new industrial construction is taking place in the I-55 corridor, while 2.2 million square feet is rising in the Northwest Indiana submarket. The I-80/Joliet corridor is seeing 1.8 million square feet of new industrial construction, according to NAI Hiffman.

NAI Hiffman says that little new construction activity is taking place in the infill locations of Cook County because of power, land and entitlement constraints.

The Chicago-area industrial market saw some major projects break ground in the first quarter. NAI Hiffman pointed to Trammel Crow’s 788,000-square-foot ware house in Plainfield, the biggest new project breaking ground here during the first three months of the year. This project is expected to deliver in the second quarter of 2027.

On the build-to-suit side, John Deere began building its 1.2-million-square-foot distribution center in Lake County, Indiana, This new facility is rising on 234 acres at 2105 W. 181st St. in Lowell, Indiana, and is part of John Deere’s commitment to invest $20 billion into U.S. manufacturing during the next decade.

NAI Hiffman reported that the Chicago industrial market saw just more than 1.5 million square feet of deliveries during the first quarter of 2026, a dip from the 3.9 million square feet delivered during the previous quarter. By the end of 2026, the Chicago-area industrial market should be on track to deliver just more than 11.6 million square feet to the market.

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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 275 employees strategically located throughout North America.

About Hiffman National:

Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, 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 275 employees nationally and an additional six hub locations and 25 satellite offices across North America.