Vacancy continued to inch up across Greater Chicago at the start of 2025, rising 50 basis points (bps) from a year earlier to 7.4%, the highest level in more than five years. Net absorption showed nominal improvement this quarter, boosted in part by build-to-suit completions, but it remained well below levels commonly observed between most of 2021-2023. Leasing activity was moderate this quarter, led by RJW Logistics Group’s lease of a 977,000-square- foot (sf) distribution center in Joliet, its second sizeable Chicagoland lease in six months. Many companies exhibited indecision as it related to real estate due to business concerns, and there was often less urgency among them to secure space. As a result, lease transactions were observed to be taking longer to close.