Chicago Industrial Developers Thinking Small For Big Returns  
   
   
 

A swath of Chicago developers are betting on small-scale industrial properties to capture red-hot demand for last-mile locations.

 
 
Courtesy of Arco/Murray
 
   
 

Elevated construction costs, financing challenges and data center developers' ability to pay more for a site have constricted supply. As a result, industrial developers are aiming to take advantage of the limited availability of newer properties for smaller tenants who might currently be in older buildings and looking to upgrade. 

Developers that can get a capital partner and lender on board willing to ride out some of the elevated costs are going to “be the only game in town,” able to charge higher rents on more functional and better-designed buildings, said Cody Balogh, director of acquisitions at Glenstar. 

Read more about the renewed interest in small industrial properties.

— Ryan Wangman

 
 

Today's Rundown

 
 

Dermody To Build 460K SF Logistics Facility In Romeoville: The new project, named LogistiCenter at Romeoville, will break ground this spring, with completion anticipated in the first quarter of 2026. Read more. 

Forever 21 Files For Bankruptcy, Will Close 359 Stores: The retailer, which was a pioneer in the fast fashion space, has 15 stores in Illinois. The company will begin liquidation sales at its stores while simultaneously conducting a court-supervised sale of its assets. Read more.

'Pure Chaos': Inside The CRE Fallout From DOGE's Slash And Burn Campaign: The entities have terminated 793 leases so far, totaling over 10M SF and 5.7% of the GSA’s leased inventory. This includes two leases of over 60K SF in Chicago. Read more.

 
 

What Else Is Happening?

 
 
Construction Cost Growth 'Far Too Hot' As Tariffs Begin To Bite Construction Cost Growth 'Far Too Hot' As Tariffs Begin To Bite
 
   
 
CRE Groups Race To Fight Tax Plan That Would Be Like 'Dropping A Bomb On The Business Model' CRE Groups Race To Fight Tax Plan That Would Be Like 'Dropping A Bomb On The Business Model'
 
   
 
Steve Witkoff To Divest From CRE Firm As His White House Influence Grows Steve Witkoff To Divest From CRE Firm As His White House Influence Grows
 
   
 
DOGE Kills Funding Program Vital To Affordable Housing Preservation DOGE Kills Funding Program Vital To Affordable Housing Preservation
 
   
 

The Finish Line

 
 

Break out your mitts and baseball caps — in less than 24 hours, the Chicago Cubs will begin their World Series pursuit in earnest with a two-game set against the Los Angeles Dodgers in Japan. You might also want to pack several shots of espresso, as the game starts at 5 a.m. Central time on Tuesday. I’ll be fighting off the yawns as I eagerly anticipate new addition Kyle Tucker putting a long ball or two in the Tokyo Dome seats.

The Chicago Rundown is written by Chicago Reporter Ryan Wangman and edited by Central Editor Katharine Carlon. If you enjoyed today’s edition, please share and forward with anyone you think might find it interesting. We’d also love your feedback and news tips: ryan.wangman@bisnow.com.

 
   
 
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