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Retail is picking up in Chicago

The overall vacancy rate dipped slightly, to 10.9% in Q3

Magnificent Mile on Michigan Avenue (Credit: iStock)
Magnificent Mile on Michigan Avenue (Credit: iStock)

Well, would you look at that. Chicago’s retail market is quietly growing in strength.

The vacancy rate dropped to 10.9 percent in the third quarter, down from 11.1 percent in the second quarter, according to a CBRE report cited by Crain’s. Given the broader health of the economy, it’s still not an optimal rate.

“The general feeling within the market is cautious optimism,” CBRE’s Mario Melone told Crain’s, noting it “continues to be clearly a tenants’ market.”

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Overall asking rents checked in at $18.54 a square foot. Northern suburbs had the lowest vacancy rate at 7.3 percent, while suburbs in the south were highest at 21.7 percent, according to the report.

Landlords are increasingly filling space with tenants who aren’t susceptible to the impact of e-commerce, such as restaurants, entertainment and fitness chains.

In recent months, bankruptcies from Forever21, Barneys, Sears and Carson’s have resulted in dozens of store closings around Chicago. [Crain’s]TRD Staff

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