Ohare Industrial Property

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Chicago/O’Hare Relevant Economic and Market Data  E-mail

Chicago Industrial Market Overview

With over nine million residents, the Chicago Metropolitan Area is the third largest MSA in the United States, the largest in the Midwest, and the economic engine for the region due to its diversified economy. Centrally located between the coasts, Chicago joins six major freight lines and roughly one third of all U.S. rail cargo passes through the Metro area. In addition, Chicago is home to O’Hare International Airport, the second busiest in the world, and a robust highway infrastructure consisting of

Interstates I-55, I-57, I-80, I-88, I-90, I-94, I-290, I-294 and I-355. This, along with a deep labor pool, has positioned Chicago as one of the leading national distribution markets.

The Chicago Industrial market has long been one of the most diverse and active in the country. With a product base in excess of one billion square feet, the Chicago market is recognized, along with Los Angeles and New Jersey, as one of the three largest and most desirable industrial markets in the United States. The strength of the industrial market is due in large part to the following factors:

  • Largest convergence of rail lines in the world including 14 freight rail lines and 11 trunk rail lines.
  • Intermodal traffic (originating in, terminating in, or passing through Metropolitan Chicago) equivalent to approximately 50% of the nationwide intermodal volume.
  • More than 200 truck terminals establishing the market as one of the largest trucking centers in the nation.
  • O’Hare International Airport, which, in 2006, served more than 70 million domestic and international passengers and handled more than 2 million tons of cargo.
  • Deep and diverse labor force in excess of 4.2 million employees.
  • Strategic location between two major watershed systems – the Mississippi River and Lake Michigan.

Q2 2013 Market Overview | O’Hare


The second quarter vacancy rate in the O'Hare market remained nearly flat at 8.44 percent.   Steady leasing and sale activity was able to counteract a substantial amount of vacant space returning to the market.

The O'Hare market's available industrial supply remained at 11.7 million square feet in the second quarter- the highest amount of vacant space of any Chicago -area submarket.  However, available supply in this market is down a remarkable 2.3 million square feet from one year ago.

Although  the  O'Hare  market  contains  the  highest  concentration  of  vacant space of  any Chicago market, there are only two blocks of space that can accommodate a user looking for 200,000 square feet.  855 Wood Dale Road in Wood Dale has 231,700 square feet available, while 950 -990 Supreme Drive in Bensenville has 201,000 square feet available.


One build-to-suit   project was completed in the second quarter for Yusen Logistics, which took occupancy of a 229,800-square-foot warehouse/distribution facility on the former 26 -acre Johnson & Johnson site at 1350 Estes Avenue in Elk Grove Village.

Two speculative project s broke ground in Elk Grove Village in the second quarter that will add 332,400 square feet to O'Hare' vacant inventory.  Panattoni commenced construction on a 208,400-square­ foot speculative warehouse/distribution facility at 1925 Busse Road and Bridge Development broke ground on a 124,000-square-foot warehouse/distribution facility at 2475 Touhy Avenue.

Two buildings totaling 497,700 square feet were razed in Elk Grove Village in the second quarter- a 316,300 square-foot building at 2299 Busse Road and a 181,400-square-foot  facility at 2727 Higgins Road. These sites will quickly become home to new industrial development.


O'Hare  second  quarter  leasing  activity  surpassed  the 1.0 million  square  foot mark  for  the third consecutive quarter, with a second quarter total of 1.2 million square feet.  Although impressive, this marks a 24.6- percent decline from the first quarter total of 1.8 million square feet.

Second quarter leasing activity was most prevalent in spaces less than 50,000 square feet, with total volume in that size range measuring   679,100 square feet.   This represents 58 percent of the 1.2 million square feet leased during the second quarter of 2013.

Second quarter sale volume measured 291,500 square feet, which more than tripled the first quarter level of 92,000 square feet.  The largest sale completed sale occurred when JD Lighting purchased a 50,800- square-foot facility in Itasca.

Second quarter sale activity was down 68.6 percent from one year ago when an astonishing 927,300 square feet of sale transactions were completed.


After two prior quarters of strong, positive net absorption, the O'Hare market's second quarter net absorption dipped to negative 257,600 square feet.  Healthy user demand was not enough to compensate for the large amount of space returning to market.



Size (SF)



MasTec Network Solutions, LLC


1351-95 Irving Park Road, Itasca, IL


DGS Retail


1201 Kirk Street, Elk Grove Village, IL




1501-21 Morse Ave., Elk Grove Village, IL


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