Add Best Buy to the ever-growing list of retailers leaving Magnificent Mile

The electronics chain plans to close its location in the former John Hancock Center in November

Chicago /
Jul.July 23, 2019 01:30 PM
The Best Buy at 875 North Michigan Avenue (Credit: Glenn H. Johnson Construction)

The Best Buy at 875 North Michigan Avenue (Credit: Glenn H. Johnson Construction)

Best Buy plans to close its store at 875 North Michigan Avenue, adding to the retail challenges along Magnificent Mile.

The Minnesota-based electronics chain plans to close the 35,000-square-foot location in the building formerly known as the John Hancock Center in November, according to the Chicago Tribune.

A company spokesperson told the Tribune the store had one of the highest rents in the entire chain — even higher than some Manhattan locations.

The retail vacancy rate along the strip hit 12 percent last year, up from 4 percent in 2015, according to Newmark Knight Frank.

Vacant storefronts included a number of high-profile properties, like the former Apple Store at 679 North Michigan that’s been empty since 2017.

However, things along the commercial section of Michigan Avenue could be looking, well, more magnificent. Overall, rents along the Mag Mile are dropping, hitting $450 per square foot last year — a $100 drop from the previous two years, according to Cushman & Wakefield.

New York-based Madison Capital and New Jersey-based Prudential Real Estate Investors, which own the retail portion of the former Hancock building, already have received some interest in the Best Buy space, Cushman & Wakefield retail broker Greg Kirsch told the Tribune. [Chicago Tribune] — John O’Brien


Related Articles

arrow_forward_ios
DL3’s converted South Side Target store fetches $20M
DL3’s converted South Side Target store fetches $20M
DL3’s converted South Side Target store fetches $20M
717 N Michigan and Acadia’s Christopher Conlon (Acadia, LinkedIn via Conlon)
Disney Store departs Mag Mile, leaving Acadia’s prime retail corner vacant
Disney Store departs Mag Mile, leaving Acadia’s prime retail corner vacant
Kite Realty CEO John Kite and RPAI CEO Steven Grimes (Getty, Kite, RPAI)
Kite Realty to acquire Retail Properties of America for nearly $3B
Kite Realty to acquire Retail Properties of America for nearly $3B
Abt Electronics co-presidents Mike and Jon Abt and a rendering of the Abt Electronics warehouse in Glenview (Abt, McShane Construction) 
Abt Electronics expands warehouse to 800K sf
Abt Electronics expands warehouse to 800K sf
Albert Friedman and the Medinah Temple (Friedman Properties)
New River North retail venue and food hall won’t be a flash in pan
New River North retail venue and food hall won’t be a flash in pan
Northbrook Court mall (Brookfield, iStock)
Lender eyes sale of Brookfield’s Northbrook Court mall
Lender eyes sale of Brookfield’s Northbrook Court mall
Water Tower Place at 835 N Michigan Avenue and Cook County Treasurer Maria Pappas (Google Maps, Cook County)
“What are you thinking, Brookfield?” County treasurer opposes Target on Mag Mile
“What are you thinking, Brookfield?” County treasurer opposes Target on Mag Mile
CIM Group’s Shaul Kuba and 444 N. Michigan Avenue (Getty, Google Maps)
Here’s what tenants are paying at CIM’s 444 North Michigan
Here’s what tenants are paying at CIM’s 444 North Michigan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...