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Chicago 2026 U.S. Real Estate Market Outlook

January 14, 2026 9 Minute Read

Chicago (1)

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Executive Summary

CBRE Research insights on what’s in store for Chicago office, industrial, retail, data centers and multifamily in 2026 and beyond.

Office

Demand for prime space in Chicago shows no signs of slowing, and less availability will play a major role in shaping the office market this year. There are currently three blocks of available prime space over 100,000 sq. ft. and only one new office property is slated for delivery in 2026. With no further projects in the pipeline until at least 2029, the squeeze will only become more palpable.

Industrial

Occupiers will continue their flight to quality in 2026 due to the availability of first-generation space and the demand for taller clear heights, more power and new amenities. Class A industrial space, which accounts for less than 20% of the total inventory, recorded higher levels of positive net absorption in 2025 than the remaining 80% of commodity space.

Retail

A notable lack of availability in Chicago’s neighborhoods will drive the retail market in 2026. On Southport and Armitage, as well as in the Gold Coast and Fulton Market submarkets, there has been little new construction to replace disappearing space for new tenants. Rent growth will remain strong for owners, and tenants will need to look beyond traditional corridor borders for suitable space.

Data Centers

Chicago’s data center market grew by more than 268 MW year-over-year in Q4 2025, as vacancy fell to 2.4%. Rental rates rose by approximately 11% year-over-year in Q4 2025, driven by sustained demand from large tech companies and AI firms. Capacity will steadily come to market through H1 2026 and beyond. However, longer power delivery timelines are pushing out delivery dates.

Multifamily

Chicago’s multifamily rent growth rose by 4.6% year-over-year in Q3 2025 and is forecasted to grow by an additional 3% in 2026, driven by an ongoing shortage in new construction. The market has the lowest construction pipeline among major U.S. markets, and this year will mark its lowest level of construction completions since the Great Financial Crisis.

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U.S. Real Estate Market Outlook 2026

January 14, 2026
Despite uncertainty, growth will continue for the U.S. commercial real estate market in 2026.
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