CBRE Lists Magnificent Mile Retail Space

CBRE is testing the demand for retail space on Chicago’s Magnificent Mile with a 22,000-square-foot listing as the corridor makes an uneven recovery from the pandemic.

The brokerage is marketing the retail street component at the base of the 322,000-square-foot, 24-story 500 North Michigan Avenue. The space is fully leased by Chick-fil-A, Vans and Bank of America — which recently renewed its lease through 2030, according to the listing. Renovations to the building were completed in 2021. The 54-year-old office tower was put on the market by an ownership group led by New York real estate investor Samuel Schapira in May.

The Windy City’s once-storied retail corridor has lost a number of high-profile stores since the beginning of the pandemic, including Banana Republic, Gap, Macy’s, Uniqlo and Timberland. In some cases, landlords are struggling to replace tenants and building owners have tried to create smaller spaces for retailers. The North Michigan Avenue retail vacancy rate rose to 26 percent in 2021 from 5.3 percent in 2017, according to Cushman & Wakefield.

That said, it hasn’t been all departures. The strip got its biggest retail deal since 2015 with Canadian women’s clothing brand Aritzia leasing the former Gap store at 555 North Michigan Avenue, as well as Swarovski, the Museum of Ice Cream and It’Sugar.

Though Chicago’s retail market is making strides toward recovery citywide, leasing in the Mag Mile, the Loop and River North has lagged behind the suburbs. Still, there were 70 percent more retail property trades in the Chicago area in the year ending in March than in the prior 12 months.

Another large retail listing testing the waters is Isaac Shalom’s 171,00-square-foot retail space at the corner of State and Madison streets at One North State, which was put on the market in October.