Hoka Switches Retail Leases on Chicago’s Magnificent Mile

Chicago’s Magnificent Mile is walking the line between comeback story and cautionary tale.

Running shoe brand Hoka is relocating its Chicago flagship just a few blocks north on North Michigan Avenue, Crain’s reported, signaling ambiguity about its future on the embattled retail corridor.

Hoka’s 3,000-square-foot storefront at 746 North Michigan Avenue is a modest upgrade from its previous 2,135-square-foot space at 444 North Michigan, which Chicago-based Golub & Company and Los Angeles-based CIM Group recently lost via deed-in-lieu of foreclosure to Blackstone Mortgage Trust.

The retailer’s new lease, in a building owned by Spanish fast-fashion mogul Amancio Ortega’s Ponte Gadea, is reportedly a short-term deal, suggesting Hoka’s parent company, Deckers Brands, is still evaluating its long-term presence in the city.

The shift underscores ongoing volatility and slow signs of revival along the Magnificent Mile, where ground-floor vacancies and ownership shakeups have become routine.

The corridor’s woes peaked with a 33 percent vacancy rate during the pandemic, which has since improved to 26 percent, according to the Magnificent Mile Association. Hoka’s former building, shared with Coach and The Purple Pig, was listed for a “lender-directed sale” last year but never traded.

While some luxury brands like Chanel and Bottega Veneta have abandoned the Mag Mile for the Gold Coast’s Oak Street, others are choosing to reposition.

MetLife, for one, announced last week it will convert Water Tower Place’s upper floors to office and medical space, keeping only the mall’s first three levels for retail.

Still, some brands are betting on the corridor’s rebound. Concepts on the way include a Harry Potter-themed store, Warner Bros. Experience and a revamped Aritzia space. Hoka’s move, while cautious, suggests retailers see value in the Mile’s foot traffic.

The relocation is also a signal to landlords that even brands staying loyal are seeking flexibility.

— Judah Duke