Central Loop takes another hit as Old Navy say it’s leaving
Company says it won’t renew lease expiring at the end of the year
Another big-name retailer is leaving the Loop.
Old Navy said it will close its 32,000-square-foot store at the corner of State and Randolph streets, Crain’s reported. The brand decided not to renew a lease that expires at the end of the year.
Old Navy has occupied the space at 150 North State Street for the past 10 years. Before it took over from Borders, Old Navy had a store about a block south that’s now home to Primark. Old Navy has five stores in the Chicago area proper.
The clothing store, owned by San Francisco-based Gap, hasn’t said if it would open a smaller store somewhere nearby or leave the neighborhood altogether. The decision to exit comes after DSW said in June that it’s leaving its store at 35 South State Street in June.
Gap also closed its Chicago flagship store last year. Gap occupied a three-story, 46,000 square foot building at 555 North Michigan Ave. from 2000 until its lease expired in November 2020, and the store closed in January 2021.
The soon-to-be-vacant Old Navy space has 7,300 square feet at street level and the remaining 24,700 square feet spans the second, third and lower levels. According to CBRE, which is marketing the space, a new tenant would probably pay a lower rent than Old Navy because of the Loop’s weak state. Disney, New York & Co. and Urban Outfitters closed retail outlets on State Street during the pandemic.
In the Central Loop, which includes State Street, the vacancy rate fell to 23.1 percent at the end of 2021, from 26.1 percent six months earlier, brokerage Stone Real Estate found. Vacancies in the Loop hit a record 27.4 percent this year.
— Victoria Pruitt