Mag Mile retail market a crossroads

Like other prime “High Street” retail strips around the country, North Michigan Avenue has struggled in recent years.

TRD CHICAGO /
Jun.June 06, 2019 01:00 PM
Chicago's Michigan Avenue, known as the Magnificent Mile (Credit: iStock)

Chicago’s Michigan Avenue, known as the Magnificent Mile (Credit: iStock)

 

Like other so-called “High Streets” around the country, the Magnificent Mile is at a crossroads.

Chicago’s premier retail strip has seen vacancy climb to 12 percent. It has seen a number of major store closings, including Forever 21 and Tommy Bahama late last year, and with Topshop planning to soon shutter a three-floor store.

And average new leases started at $450 per square foot in 2018, down from $550 per square foot in 2016, according to the Chicago Tribune.

Other “High Streets” like New York’s Fifth Avenue and Lincoln Road in Miami are similarly feeling the pinch after years of soaring rents, according to the Tribune.

But the Mag Mile is unique in having more malls and department stores, which keep vacancy down and provide long-term stability, experts said. Without the malls and department stores, vacancy on the strip would be 29 percent, the Tribune reports.

And even though the ongoing redevelopment of Tribune Tower by CIM Group and Golub & Company will add 48,000 square feet of new retail space, experts said there are several signs of hope along the Mag Mile.

One is the diversification of the tenants, including Starbucks’ new 43,000-square-foot cafe and roastery in a vacated Crate & Barrel. Niketown also dedicated a large space to a huge treadmill for classes and gear test-runs.

Another is Chicago’s booming tourism industry, which had a record year in 2018. Plus, the hundreds of planned condos and apartments in the Tribune Tower redevelopment are poised to bring hordes of new potential customers to go with all those tourists.

[Chicago Tribune] — Joe Ward


Related Articles

arrow_forward_ios
Chicago Area Vacancy Rate Continues Decline

Chicago-area retail isn’t out of the woods yet

As fewer tenants want huge blocks of space, retail landlords along the Magnificent Mile have adapted by breaking up spaces for multiple tenants. (Credit: iStock, Google Maps; illustration by Kevin Rebong for The Real Deal)

Portion Control: Inside the retail rightsizing of the Magnificent Mile

Marc Jacobs store at 11 E. Walton St., Marc Jacobs (Credit: Getty Images and Google Maps)

Another one bites the dust: Marc Jacobs closes Gold Coast location

Time Out Market at 916 West Fulton Market and Revival Food Hall at 125 S. Clark Street 

Does Chicago still have an appetite for food halls?

Chicago Skyline (Credit: iStock)

Windy City’s real estate blown away by other cities

Location of the Poplar-Prairie Stone Crossing and Walton Street Capital CEO, Neil Bluhm (Credit: Google Maps and Getty Images)

Walton Street Capital’s mall sale highlights retail market woes

Eddie Lampert and the two closing Sears locations at 5000 Spring Hill Mall (top) and 2200 W War Memorial Drive (Credit: Getty Images, Google Maps)

Where have all the Sears stores gone? Illinois is now down to a handful

Acadia Realty Trust CEO Kenneth Bernstein and 849 (right) and 912 W. Armitage Avenue in Chicago’s North Side (Credit: VHT Studios and ICSC)

Acadia Realty Trust is obsessed with this Chicago shopping corridor

arrow_forward_ios
Loading...