Urban Outfitters’ Gold Coast Exit Creates Retail Opportunity

Urban Outfitters is pulling the plug on its Gold Coast outpost, creating a rare large retail availability in one of Chicago’s most supply starved, high-rent neighborhoods.

The Philadelphia-based clothing and home goods chain will vacate its multilevel space at 1100 North State Street this month, according to signage posted at the store and brokers at CBRE marketing the property, CoStar reported. The move comes as Urban Outfitters’ lease expires, roughly a decade after the retailer made a then-bold leap north from its former Rush Street site into a pocket better known for steakhouses than soft goods.

The vacancy sets up a real-time stress test for top-tier urban retail, which has outperformed the broader market since the pandemic upended shopping corridors in early 2020, according to CoStar. While stretches of the Magnificent Mile continue to work through elevated vacancy and repositioning, the Gold Coast has largely thrived, buoyed by dense wealth, tourism and a restaurant scene that never fully lost its luster.

Urban Outfitters occupied space on the ground and lower levels of the three-story building, which it shares with Maple & Ash, one of the highest-grossing restaurants in the country. The steakhouse controls part of the ground floor and the entire third floor, anchoring the property with consistent foot traffic day and night.

CBRE is seeking a new tenant for Urban’s former space, with leasing options ranging from roughly 5,000 square feet to 19,007 square feet, including the vacant second floor. The property is owned by the State Teachers Retirement System of Ohio and is being marketed by CBRE brokers Danny Jacobson, Stephen Ansani and Luke Molloy. The marketing brochure from CBRE does not list any asking price.

Urban Outfitters did not respond to requests for comment from the outlet. It’s unclear whether the brand could return to the Gold Coast in another format. The company still operates Chicago-area stores on North Milwaukee Avenue and at Westfield Old Orchard and Oakbrook Center. Nationally, Urban Outfitters has been experimenting with new store concepts and resale-focused Reclectic stores.

Jacobson told the outlet that interest is already building, with early conversations spanning apparel, food and beverage, furniture and home décor. Some prospects would be new to Chicago.

The building sits in the Viagra Triangle, a nickname locals use for the affluent wedge formed by State and Rush streets and Bellevue Place. New retail is also coming online at the base of Newberry Tower Plaza, and Convexity Properties is planning apartments on the former Barnes & Noble site nearby.

— Eric Weilbacher