Central Will’s industrial market closed 2025 with strong fundamentals, supported by limited vacancy, steady rent growth, and stable investment activity. Vacancy rose modestly to just over 1% following recent deliveries and slight negative absorption, but remains well below long-term historical averages, underscoring the submarket’s supply-constrained environment. Asking rents continued to upward through the year, reflecting sustained tenant demand and positioning the submarket for continued, moderate growth. Development activity has picked up, with new space underway above historical norms, which may gradually ease conditions. Meanwhile, sales activity remained consistent with long-term averages, indicating steady investor interest. Overall, Central Will enters 2026 on stable footing, with balanced fundamentals and measured growth expected.

 

Key Highlights

• Vacancy rose to 1.24% in Q4 2025 following recent deliveries, but remains well below the 10-year average of 5.7%, underscoring the submarket’s long-term supply constraints.
• Asking rents reached $7.62/SF in Q4 2025, reflecting steady annual growth, while small to mid-size industrial buildings are achieving $8–$15/SF, with newer and higher-quality properties reaching the top of that range.
• Thirteen properties traded over the past year totaling $26.5 million, with pricing near $88/SF and cap rates averaging 7.9%, signaling stable investor demand in a disciplined capital markets environment.

Rents

Central Will’s industrial rents closed 2025 on a strong note, with asking rents reaching $7.62/SF in Q4. This marks a steady climb from $7.30/SF in Q4 2024 and a notable increase from $6.44/SF at the end of 2022, highlighting consistent long-term growth. While rents fluctuated throughout 2025, the overall annual trend remained upward, supported by limited new supply and tight market conditions. Looking ahead, rent growth is expected to continue at a measured pace, with annual increases projected to remain above the broader Chicago average through 2026.

 

Market Asking Rent Per SF

Source: CoStar Group, Inc.

 

Vacancy

The vacancy rate across Central Will rose to 1.24% in Q4 2025, marking an increase from 0.45% in Q4 2024 and signaling a modest easing after several years of extremely tight conditions. The late-2025 uptick reflects recent deliveries and slight negative absorption, though overall availability remains limited by long-term standards. Despite this recent rise, vacancy is expected to remain low relative to historical averages. Projections indicate a gradual increase through 2026, potentially reaching the mid-1% range as new space delivers and leasing activity stabilizes.

 

Vacancy Rate

Source: CoStar Group, Inc.

 

Construction

New construction activity across the broader market moderated in 2025 but remains elevated relative to pre-2023 levels. As of Q4 2025, 5.6 million SF is under construction, up from 4.7 million SF one year earlier but significantly below the peak pipeline of more than 13 million SF recorded in early 2022. While the pipeline has normalized from its historic highs, ongoing deliveries will continue to shape vacancy and rent growth trends as new supply is absorbed across the market.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sales

Will County’s industrial investment market demonstrated stability in 2025, with 13 transactions totaling $26.5 million and approximately 360,000 SF in inventory turnover over the past year. Annual sales volume remains in line with historical norms, compared to the five-year average of $27.8 million, signaling consistent investor engagement despite broader capital market shifts. Q4 2025 recorded $13.5 million in sales, with pricing reaching $87/SF, reflecting continued appreciation from the mid-$70/SF range seen in prior years. Overall market pricing is estimated at $88/SF, below the broader market average of $98/SF, while cap rates average 7.9%, slightly tighter than the regional benchmark.

 

Sales Volume & Market Sale Price Per SF

Source: CoStar Group, Inc. | 10k – 15K SF

 

By the Numbers

Source: CoStar Group, Inc.

 

Sales Volume: $13.5M

Cap Rate: 7.9%

Price Per SF: $87

Vacancy Rate: 1.2%

Rent Growth (YoY): 4.3%

Asking Rent Per SF: $7.62

Under Construction (SF): 5.6M

Delivered (SF): 34K

Absorbed (SF): 4.5M