Retailers Flock to Chicago’s Spendy North Side

Retailers are coming back to Chicago’s North Side one block at a time.

Abercrombie & Fitch is set to open a 2,900-square-foot store this summer at 921 West Armitage Avenue in Lincoln Park, replacing the Chicago Bar Store, which closed last year, CoStar reported.

The fast-fashion retailer entered a five-year lease with a five-year extension option, according to landlord Brian O’Donnell of Armitage Properties.

San Francisco–based apparel brand Marine Layer is also relocating nearby, moving from 849 West Armitage to a 1,200-square-foot space at 825 West Armitage. The move follows a deal with Levain Bakery, which is taking over Marine Layer’s current storefront later this year. The new Marine Layer location is expected to open by the end of June. The owner of 825 West Armitage is listed in public records as Victrola Partners.

The deals come amid exceptionally tight retail conditions on Armitage, where vacancy fell to just 4.3 percent last year and is expected to dip even lower this year, according to brokerage Stone Real Estate.

The corridor, a compact stretch between Halsted Street and Sheffield Avenue, has become a magnet for digitally native brands and traditional retailers looking to tap into the neighborhood’s dense, high-income demographic.

Recent additions include Catbird, Hotel Chocolat, Rails and Black Tux. Retail rents on the corridor have climbed above $100 per square foot for prime spaces, pushing out some local tenants as national brands rush in.

“It’s pushed up the rents,” O’Donnell told the outlet. “The demographic is their customer base. It’s good for landlords, but some mom and pops can’t afford to stay.”

Armitage joins Southport Avenue and Oak Street as one of the few retail corridors in the city where demand has not only held steady but accelerated in recent quarters.

The leasing velocity stands alongside a modest uptick in activity the past few months in Chicago’s Magnificent Mile, where vacancies persist. Recent leases include Spanish fashion retailer Mango, a Harry Potter-themed concept shop and a returning Uniqlo store at 830 North Michigan. The Mag Mile’s retail vacancy is about 25.35 percent, according to Newmark.

— Judah Duke