Chicago Industrial Real Estate: Discussing Warehouse Market Trends and Opportunities
Caitlin Sullivan serves as senior vice president and market officer for Link Logistics in Chicago and Wisconsin, where she oversees leasing for distribution centers and logistics facilities across the region. With deep expertise in Chicago industrial real estate, Caitlin helps companies navigate one of the nation's most established logistics markets, connecting businesses with warehouse space that supports their operational goals. She works with a diverse range of customers, from last-mile delivery operators to national distributors looking to leverage the Midwest's central geography. Here, Caitlin discusses current market dynamics, emerging trends in Chicago’s warehouse and industrial real estate landscape, and what makes the Chicagoland region attractive for businesses seeking distribution space.
What's driving demand for industrial real estate in Chicago right now?
Caitlin: Chicago's industrial real estate market benefits from exceptional diversity—it isn't built on just one industry or use case. The region maintains a long-standing manufacturing base that continues to evolve, supporting everything from data center suppliers and e-commerce operations to HVAC and plumbing supply companies. This diversification creates stable, consistent demand across multiple sectors.
The Chicago market's central U.S. location and unmatched transportation infrastructure remain fundamental drivers. Chicago is the only city in the country that hosts all six Class I railroads, making it a natural hub for transcontinental freight movement. Even as logistics evolves, rail remains critical for goods moving in and out of ports, and recent consolidation among rail companies has strengthened Chicago's position as products cross the country. The region also benefits from two major east-west transcontinental highways plus multiple north-south connections, providing comprehensive trucking access.
The Chicagoland industrial market extends beyond Illinois to include parts of Southeast Wisconsin and Northwest Indiana, giving businesses flexibility to position operations based on their specific supply chain needs, labor market preferences and state incentive structures. This geographic reach across three states allows companies to optimize their location within the broader market while maintaining access to Chicago's core infrastructure advantages.
What's one major trend or development you're seeing in the Chicago warehouse market that businesses should know about?
Caitlin: Data centers represent a major growth area, driven by Illinois' natural resources including reliable power, abundant fresh water and a relatively stable climate. This expansion has created substantial demand for associated warehouse space in Chicago—companies supplying IT cabinets, HVAC systems, generators and other data center infrastructure are increasingly active.
Beyond data centers, the traditional third-party logistics sector continues to evolve with more specialized service offerings. Some 3PLs now focus specifically on imports, while others provide unique value-added services for end retailers. These specialized operators reflect a broader trend toward greater efficiency and customization throughout the supply chain lifecycle, as businesses seek more targeted logistics solutions rather than one-size-fits-all warehousing and distribution services.
How does Link Logistics support companies looking for warehouse space in the Chicagoland region?
Caitlin: Link Logistics' scale and geographic coverage position us to serve diverse customer needs across the Chicago market. We operate over 30 million square feet spanning 17 of the 21 submarkets in the Chicagoland area, providing customers with options across a wide range of locations and building sizes. Our portfolio includes spaces from 5,000-square-foot units suitable for smaller operations to 750,000-square-foot facilities serving major e-commerce and distribution operations—with everything in between. Rather than concentrating in specific submarkets, Link Logistics maintains a presence across nearly every institutional submarket in the region, which means we can match customers with warehouse space that fits their specific geographic and operational requirements. This breadth of coverage—combined with our scale—allows us to support businesses as they grow and their space needs evolve within the Chicago industrial market.
Looking ahead, what opportunities do you see for businesses considering the Chicago area for their warehouse and logistics operations?
Caitlin: The infrastructure fundamentals that established Chicago as a major industrial market will continue to serve businesses well into the future. Power availability remains a significant advantage—Illinois is managing energy supply relatively well compared to other markets at a time when power continues to be a critical concern for all types of industrial users. While people may not embrace Chicago winters, the region actually offers climate stability that matters for long-term business planning. Chicago will continue to function as a major economic center. It’s home to numerous Fortune 500 companies and benefits from Big Ten universities that supply both white-collar and blue-collar talent across the broader Midwest.
This combination of reliable infrastructure, stable climate, economic strength and diverse labor markets creates a strong foundation for companies establishing or expanding warehouse, distribution or light manufacturing operations. The same fundamentals that built Chicago's industrial economy—central location, multimodal transportation, manufacturing heritage and workforce depth—remain highly relevant for modern supply chain strategies.
Explore available warehouse space in Chicago to learn more about industrial real estate opportunities in the region.
