Before we dive into specific statistics for the Chicago industrial real estate market in Q4 2022, we want to highlight an important statistic that investors keep an eye on, the market cap rate, which currently sits at 5.6% in Chicago. That is above the average cap rate of commercial real estate assets around the country, about 4%.

Chicago industrial real estate market expert insight:

While other product types appear to be cooling off and daily discussions remain evident of a looming recession, the industrial market continues to maintain strength across the board.

Vacancy levels remain at historical lows across the US, industrial rents are at premiums and inventory remains scarce in various markets especially for users seeking acquisitions where institutional landlords acquire anything they can get their hands on.”

– Mike Hawryluk, Managing Principal, ICG CRE

Chicago Industrial Real Estate Statistics & Highlights: Leases, Sales, and Under Construction Assets – Q4 2022

We’ve broken the Chicago industrial real estate market summary into 3 main categories: leasessales, and properties under construction in the area.

Chicago Industrial Real Estate Lease Stats

Vacancy: 4.0%
Absorption: -420,880
Asking rate PSF: $8.83

Chicago Industrial Leasing Stats – Q4 2022 (Past 12 Months)

12 Month Deliveries in SF: 28.9M
12 Month Net Absorption in SF:
Vacancy Rate:
12 Month Rental Growth: 8.6%

Top Chicago Industrial Space Leases Signed (Past 12 Months)

1. 4300 Brandon Rd
Size: 1,035,034 SF

2. 10601 38th St
Size: 1,004,400 SF

3. 901 Carlow Dr
Size: 997,802 SF

4. 3301 Brandon Rd
Not Listed
Size: 990,000 SF

5. 325 State Rt
Not Listed
Size: 957,970 SF


Chicago Industrial Real Estate Sales Stats – Q4 2022

During the last 12 months there have been 1,498 sales comparables in Chicago’s industrial market with an average cap rate of 7.6%. The average price per square foot for these sales was $84, and the average vacancy at the time of the sale was 5.6%.

Sales Comparables: 1,498
Average Cap Rate:
Average Price/ SF:
Average Vacancy at Sale: 5.6%

Top Chicago Industrial Sales (Past 12 Months)

Top Transaction Highlight in Q2 2022: Mary Brickell Village 

1. Mary Brickell Village (900 S Miami Ave)
198,600 SF
Price/ SF: 
Cap Rate:
Not Listed

2. Westland Mall (1675 W 49th St)
315,083 SF
Price/ SF: 
Cap Rate:
Not Listed

3. Life Time – Gables Station (237 S Dixie Hwy)
Price: $108,553,806
Size: 125,000 SF
Price/ SF: $868
Cap Rate: Not Listed
Vacancy: 0%

4. Lincoln Center (1100 – 1120 Lincoln Rd)
Price: $93,600,000
Size: 129,360 SF
Price/ SF: $724
Cap Rate: Not Listed
Vacancy: 17.0%

5. Homestead Pavilion (2457 NE 10th Ct)
Price: $56,426,562
Size: 201,224
Price/ SF: $280
Cap Rate: Not Listed
Vacancy: 0%


Chicago Industrial Assets Under Construction Stats (Past 12 Months)

There are currently 106 industrial properties under construction in Chicagoland. These assets will add over 37M square feet of new product to the market. These properties represents 2.9% of the total industrial real estate inventory in the area, and nearly 30% of the total industrial space is pre-leased.

Properties Currently Under Construction: 106
Total Size:
Percent of Inventory:
Pre-leased: 28.1%

Chicago Industrial Properties Under Construction

Here are the top-5 largest industrial projects currently under development. The list is led by a new Facebook Data Center that will have 2.4M square feet of space.

1. Facebook DeKalb Data Center (Gurler Rd)
Size: 2,400,000 SF
Completion Date: Q2 2023
Developer/ Owner: Not Listed / Meta Platforms, Inc
Stories: 1

2. Minooka Distribution Center (11075 McLinden Rd)
Size: 1,500,800 SF
Completion Date: Q4 2023
Developer/ Owner: Molto Properties / Walmart, Inc
Stories: 1

3. Third Coast Intermodal Center (SWC Millsdale & Route 53)
Size: 1,218,120 SF
Completion Date: Q3 2023
Developer/ Owner: NorthPoint Development / Not Listed
Stories: 1

4. 1237 W Division St
Size: 1,184,800 SF
Completion Date: Q3 2024
Developer/ Owner: Not Listed / Logistics Property Company, LLC
Stories: 5

5. Third Coast Intermodal Center (SWC Millsdale & Route 53)
Size: 1,056,275 SF
Completion Date: Q3 2023
Developer/ Owner: NorthPoint Development / Not Listed
Stories: 1


If you’re interested in finding out more about Chicago’s commercial real estate market and keeping up to date on what’s going on, check out our Chicago CRE News page for the latest highlights and transactions.


Sources of Data: ICG CRE & CoStar