The Chicago Commercial Real Estate Market

Chicago is a powerhouse of the Midwest, a global city where business, innovation, and culture intersect along the shores of Lake Michigan. With close to 2.7 million residents and a metro area brimming with opportunity, Chicago continues to attract investors, companies, and talent from around the world. Its diverse economy, impressive talent pool, and central location make it a natural hub for industries ranging from finance and tech to manufacturing and logistics. 

Brokers harness Crexi's listing, lead management, and marketing tools to win deals in Chicago and the surrounding cities. Crexi’s simple, robust marketplace allows Chicago commercial brokers to directly connect with buyers and tenants who've already indicated an interest in the MSA. Crexi's tools have supported more than $615 billion in property transactions and marketed properties totaling more than $7 trillion in value.

Crexi proudly serves Chicago, Naperville, Joliet, Aurora, and the entirety of Cook County as the fastest-growing online commercial real estate marketplace.

The State of Chicago Commercial Real Estate 

Set against the iconic backdrop of Lake Michigan, Chicago is a city that knows how to blend history, innovation, and ambition. As the largest city in Illinois and the third most populous in the U.S., Chicago has long been a magnet for finance, commerce, and industry, its strategic location placing it at the crossroads of national and global trade.

From its striking skyline and world-renowned architecture to its lively food, arts, and cultural scenes, Chicago offers more than just economic muscle; it promises a rich urban experience that draws businesses, residents, and visitors alike. The city’s resilience and ability to reinvent itself are reflected in everything from its bustling downtown core to its diverse, thriving neighborhoods.

For commercial real estate investors, Chicago presents a compelling mix of opportunity, energy, and scale, making it a top-tier destination for those ready to tap into one of America’s most dynamic metropolitan markets.

Chicago Regional Breakdown

The Chicago metropolitan area is a region in motion, shaped by shifting demographics, economic evolution, and the push for reinvention. While certain challenges have emerged, they also highlight the region’s adaptability and its potential for smart, thoughtful renewal. Across Chicagoland, there are exciting opportunities for revitalization - from reimagined urban corridors to suburban growth zones - supported by strategic investment, diverse industries, and a spirit of resilience.

• Chicago is home to over 2.6 million in the city and more than 9.2 million in the metropolitan area.
• Metro Chicago comprises Cook and DuPage counties.
• Core cities in the Chicagoland area include Aurora, Joliet, Naperville, Elgin, and Waukegan.
• The median age is 36.4, which is slightly younger than the Illinois median.
• Per capita income is $48,954, and median household income is $74,474.

Chicago Job Market

Chicago’s economy thrives on its remarkable diversity, spanning finance, manufacturing, life sciences, technology, and transportation - all fueled by its strategic position as a national and global logistics hub. Recent momentum across the job market reflects the region’s resilience, with steady employment gains and encouraging signs of recovery in key sectors. Year-over-year job growth continues across the Chicagoland area, aligning with broader statewide improvements. 

For companies, workers, and investors, Chicago is home to an ecosystem shaped by top-tier talent, a culture of innovation, and world-class infrastructure, making it a dynamic environment where opportunity and growth go hand in hand.

• Chicago-Naperville-Elgin's GDP is nearly $895 billion, up from $675 billion in 2017.
• The area is home to 32 Fortune 500 companies and 14 Global 500 companies, including Walgreens, State Farm, Archer Daniels Midland, Deere, and McDonald’s Corporation, according to the Illinois DCEO.
• Nearly 2,000 major corporations maintain their headquarters in Chicago.
• The unemployment rate in the metropolitan area is 5.3% as of March 2025.
• Industry sectors reporting the highest levels of growth include mining and logging, education and health services, and government.
• Major employers in Chicago include Rivian, Abbvie, Caterpillar, Capstone Logistics, Schneider Electric, and Dairy Farmers of America. 
• Priority industries are food innovation and manufacturing, life sciences, finance and fintech, manufacturing, innovation and technology, and transportation and logistics.
• The 1901, a new quantum hub on the Southeast Side, and a revitalization for the famous Congress Theater are just a few of the most anticipated real estate development projects planned across the city.
• Chicago ranks among the top 20 cities for STEM professionals, according to a report from WalletHub.
• More than 45% of residents hold a bachelor’s degree or an advanced degree, a figure about 20% higher than in Illinois, based on data from CensusReporter.org.
• The Chicago metro area is home to prestigious institutions such as the University of Chicago, Northwestern University, the University of Illinois at Chicago, DePaul University, and Loyola University Chicago.
• Metropolitan Chicago boasts a comprehensive transportation infrastructure featuring major interstates such as I-90 and I-94, extensive freight and passenger rail networks, two major airports (O'Hare International and Midway International), and a robust public transit system that includes the Chicago Transit Authority (CTA). The O’Hare Airport is ranked as the world’s most connected airport, putting global travel within easy reach.
• The Port of Chicago is a key multimodal facility in North America, developing and maintaining a world-class port operating as a modern, strategically driven facility.

Chicago Industrial Market

Market overview (Cushman & Wakefield Q1 2025)

• Inventory: 1,251,926,233 SF
• Vacancy rate: 4.7%
• Absorption:  1,473,928 SF (YTD)
• Leasing activity: 6,067,432 SF (YTD)
• Key leases by tenant: RJW Logistics (976,954 SF), Uline (602,376 SF), Veyer Logistics (421,361 SF)
• Under construction: 7,525,407 SF 
• Largest submarkets: Chicago South, Interstate 80 Corridor, Interstate 55 Corridor, Western Cook County

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights for the Chicago metropolitan area as of May 2025:

For Lease (active)

• Asking rate/SqFt (median): $12 per year
• Median SqFt/listing: 5,500
• Days on market (median): 307
• Total listings on Crexi: 286 spaces

For Sale (active)

• Median asking price: $1.7 million
• Price/SqFt: $83
• Asking cap rate: 4.2%
• Days on market (median): 177
• Total listings on Crexi: 114

Sales Comps (past 12 months)

• Median sold price: $441,000
• Sold price/SqFt: $94
• Total sales volume: $153 million
• Median SqFt sold/transaction: 9,100
• Total SqFt sold: 8.1 million 
• Days on market (median): 212

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Chicago Office Market

Chicago’s office market continues to navigate shifting workplace trends, with tenants recalibrating their space needs and landlords adapting to evolving demands. While elevated vacancy rates present challenges, they also open doors for creative leasing strategies and repositioning opportunities. 

Trophy and Class A properties remain magnets for companies prioritizing top-tier amenities and prime locations, helping set the tone for broader market resilience. For investors and occupiers alike, Chicago’s office landscape presents both hurdles and high-potential plays in a city that knows how to adapt and compete.

Market overview (Cushman & Wakefield CBD Report Q1 2025)

• Inventory: 142,519,162 SF
• Vacancy rate: 26.4%
• Net absorption:  -1,266,189 SF (YTD)
• Leasing activity: 1,369,418 (YTD)
• Under construction: 457,022 SF
• Key leases by tenant: Stripe (89,318 SF), Harris Associates (55,526 SF), CBRE (54,961 SF)
• Largest submarkets: West Loop, Central Loop, East Loop, River North

Crexi Insights

For the latest updates on the office market in Chicago, turn to Crexi Insights. Here is the detailed information on recent sales and leasing trends for office space as of May 2025.

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 1,489 SF
• Days on market: 325
• Total listings on Crexi: 2,063 spaces

For Sale (active)

• Median asking price: $1 million
• Price/SqFt: $151 
• Asking cap rate: 7.5%
• Days on market: 178
• Total listings on Crexi: 212

Sales Comps (past 12 months)

• Median sold price: $597,500
• Sold price/SqFt: $113
• Total sales volume: $49.4 million
• Sold cap rate: 8.5%
• Median SqFt sold/transaction: 4,400 SF
• Days on market (median): 219

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Chicago Retail Market

Chicago’s retail market continues to prove its staying power, fueled by steady demand, limited new supply, and the resilience of both national brands and local players. While challenges like slower population growth and aging inventory persist, strong leasing momentum and investor interest keep the market competitive. Tight availability and high pre-leasing rates on new projects signal a sector that’s balancing caution with confidence. For investors and tenants alike, Chicago retail offers a mix of legacy strength and fresh opportunity in one of the nation’s most enduring urban markets.

Market overview (Matthews Q3 2024)

• Inventory:  589,743,400 SF (Lee & Associates Q1 2024)
• Vacancy rate: 4.7%
• Net absorption: 1,900,000 SF (12-month)
• Key leases by tenant: Vasa Fitness (65,636 SF), Option Care Enterprises, Inc. (60,174 SF), Tony’s Fresh Market (55,000 SF)
• Under construction: 830,000 SF

Crexi Insights

Retail lease and sales trends from Crexi Insights for the Chicago metro area as of May 2025:

For Lease (active)

• Asking rate/SqFt (median): $26 per year
• Median SqFt/listing: 2,238 SF
• Days on market: 292
• Total listings on Crexi: 1,563 spaces

For Sale (active)

• Median asking price: $1 million
• Price/SqFt: $189
• Asking cap rate: 7.5%
• Days on market: 177
• Total listings on Crexi: 432 

Sales Comps (past 12 months)

• Median sold price: $430,000
• Sold price/SqFt: $136
• Total sales volume: $348.5 million
• Sold cap rate: 7.7%
• Median SqFt sold/transaction: 3,851 SF
• Days on market (median): 224

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Chicago Multifamily Market

Chicago’s multifamily market continues to show impressive stability, balancing steady demand with a healthy pace of new deliveries. While investor focus has broadened beyond downtown Class A assets to include suburban opportunities, overall occupancy and rent growth remain solid across much of the metro area. 

Developers are responding with targeted projects in both urban and suburban hubs, reflecting confidence in the region’s long-term housing needs. Suburban submarkets, in particular, are seeing renewed attention as renters seek more space and relative affordability compared to downtown living. For investors, Chicago’s multifamily market offers a mix of resilience, diversification, and untapped potential.

Market overview (Cushman & Wakefield Q4 2024)

• Multi-unit inventory: 514,150 units
• Vacancy rate: 5.0%
• Asking rent per unit: $1,821
• Rent increase: 2.7% year-over-year
• Units under construction: 6,051
• Units delivered: 8,140 (2024)
• Recent transactions: Midpointe Apartments (424 units), Railway Plaza (417 units), Ascend St. Charles (400 units)

Crexi Insights

Here are the most recent multifamily Insights from Crexi for Chicago, as of May 2025:

For Sale (active)

• Median asking price: $1.5 million
• Price/SqFt: $150
• Price/Unit: $154,200
• Asking cap rate: 7.3%
• Days on market: 90
• Total listings on Crexi: 237

Sales Comps (past 12 months)

• Median sold price: $494,400
• Sold price/SqFt: $141
• Sold price/unit: $166,700
• Total sales volume: $1.5 billion
• Sold cap rate: 7.5%
• Total SqFt sold: 14 million
• Days on market (median): 205

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Get more in-depth Chicago market data with Crexi Intelligence.