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Chicago industrial leasing surges in 2026 as big-box deals grow
Net absorption hit 6.1M SF in Q2, while Chicago signed eight leases above 750K SF and ranked third nationally with 9.4M SF of major leases in the first half of 2026.
Chicago’s industrial market posted a strong first half of 2026 as big-box tenants boosted leasing, with industrial net absorption reaching 6.1M SF in Q2. That was more than five times the first-quarter level and above the total from a year earlier, according to CBRE, marking the strongest Chicago quarter since 6.9M SF in Q2 2023.
Bisnow reports that big-box leasing helped Chicago climb into the national top tier for square feet leased, with the city ranking third in the 100 largest leases signed in the first half of the year at 9.4M SF. Chicago posted nine leases on that list, up from six leases totaling 4.9M SF in the first half of 2025, including four renewals.
CBRE Executive Vice President David Prell said developers and owners with a forward view of demand are securing sites or planning spec product, with interest spanning multiple building sizes and particularly bulk product. Prell added that leasing demand is coming from third-party logistics companies, packaging companies, and firms servicing data centers.
The quarter’s largest deal cited by Bisnow was KeHE Distributors taking 1.2M SF in Joliet, followed by Hyundai Translead agreeing to lease 900K SF in suburban Channahon. Prell attributed momentum partly to tenants pursuing power availability for automation, plus data center land demand, which drove higher land costs and contributed to rising rental rates as newer buildings reached higher cap rates.
If available spaces are on the market, their economics are being shaped by those higher construction-era costs. Bisnow also noted that nationally, sales of land planned for future data center development totaled about $3.3B in the first three months of 2026, up 141% versus the same period in 2025, with about 30% of development-site capital in Q1 going to data center land deals.