Chicago area retail vacancy hits highest point since 2010

The demise of Toys R Us pushed the region’s vacancy rate to 11.6 percent, just shy of its post-recession peak, a CBRE report said

TRD CHICAGO /
Jul.July 25, 2018 10:00 AM

An abandoned store and Toys R Us (Credit: Brian Crawford via Flickr and Michael Mozart via Flickr)

The Chicago-area retail vacancy rate hit 11.6 percent during the second quarter, reaching its highest point since 2010 and a half-percentage point shy of its post-recession peak.

Asking rents for the region’s retail tenants dipped to an average of $18.60 per square foot per year, thanks in part to the bankruptcies of Toys R Us and Carson’s department stores, according to a CBRE quarterly report cited in Crain’s.

But the report noted a growing demand for restaurants, fitness centers and grocery stores, noting a Mariano’s supermarket that opened in Crystal Lake and a new Pete’s Fresh Market in Glen Ellyn. New tenants have also swooped into former Toys R Us locations in Highland Park, Vernon Hills and Chicago’s Montclare neighborhood.

At 5.1 percent, the city’s North Side recorded the lowest retail vacancy rate of the 12 submarkets highlighted in CBRE’s report. The south suburbs notched the highest share of vacant retail spaces, with 22.5 percent.

The city’s retail vacancy rate is moving in the opposite direction as the suburbs, falling to 6.4 percent during the first half of 2018 with a 4.4 percent vacancy rate in the city center, according to a report released earlier this month by Newmark Knight Frank. [Crain’s] — Alex Nitkin


Related Articles

arrow_forward_ios
Don Thompson and 212 North Canal Street (Credit: Cleveland Avenue, Google Maps)

VC firm led by ex-McDonald’s chief buys River West office building

Governor of Illinois J. B. Pritzker (Credit: Joshua Lott/Getty Images)

State offers lifeline to devastated hospitality industry

Founder, President and CEO of Oxford Capital Group John Rutledge with Hotel Felix and Hotel Julian (Credit: Oxford Capital Group, Hotel Felix and Google Maps)

Oxford Capital designates 5 of its Chicago hotels for coronavirus housing program

The 21c Museum Hotel at 55 E Ontario Street and the Hilton at 720 S. Michigan Avenue (Credit: Google Maps)

More hotels fall victim to coronavirus pandemic

Illinois Gov. J.B. Pritzker with Jimmy Choo and Disney in Magnificent Mile (Credit: Lt. Col. Bradford Leighton via Wikipedia Commons, Google Maps)

Protected with plywood: Retailers board up shops along Mag Mile

Gov. J.B. Pritzker (Credit: (Photo by Scott Olson/Getty Images)

As clock ticks on small businesses, Chicago offer loan lifeline

Governor J.B. Pritzker (Credit: Joshua Lott/Getty Images)

Chicago’s gyms, movie theaters, bowling alleys prepare for severe restrictions

From left: Cushman & Wakefield broker Greg Kirsch, Stone Real Estate broker John Vance and Marcus & Millichap broker Mitchell Kiven (Credit: Cushman & Wakefield, Stone Real Estate, Marcus & Millichap and Getty Images)

Chicago retail brokers talk rent reductions in the age of coronavirus

arrow_forward_ios
Loading...