Intelligent Investment

Chicago 2025 U.S. Real Estate Market Outlook Midyear Review

August 6, 2025 10 Minute Read

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Executive Summary

CBRE Research insights on what’s in store for the Chicago office, industrial, retail, multifamily and data centers for the rest of 2025 and beyond.

Office

  • Trophy availability will continue to shrink as increasing demand outpaces supply growth. Developers holding well-located sites and the ability to navigate the challenging construction environment could gain anchor commitments in the near term, restarting the nearly dried up construction pipeline.

Industrial

  • Following a lull due to macroeconomic conditions, construction starts will continue to grow at a tempered pace in H2 2025 and beyond, contributing to a more balanced supply and demand than forecast nationally.

Retail

  • Neighborhood corridors will continue to exhibit steady performance as Michigan Avenue owners reposition an oversupply of large blocks with a focus on experiential retail.

Multifamily

  • Chicago will maintain the lowest incoming supply of any major market for the foreseeable future, driving elevated rent growth in H2 2025 and beyond. 

Data Centers

  • Power cost and availability will remain the largest challenge locally, continuing to spur new development on the outer rings of the Chicago metro.
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Report

2025 U.S. Real Estate Market Outlook Midyear Review

July 30, 2025
While economic uncertainty tempers growth, fundamentals remain healthy with pockets of outperformance across the industry.
Read the Report

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