Retail vacancy in metro Chicago continues to ease, especially in the city center.
Vacancy dropped back to 6.4 percent in the Chicago metro area over the first half of 2018, and it is at 4.4 percent in the city center, according to a Newmark Knight Frank report cited by The Real Deal.
“The outlook for Chicago vacancy remains positive, as construction deliveries are minimal,” the report reads. “Neighborhood centers anchored by grocers will be the strongest assets, attracting investment as cap rates remain low.”
Chicago's Magnificent Mile Located on Michigan Avenue, this is one of the world's famous shopping destinations
Though suburban Chicago has lost some big-box stores, such as Toys 'R' Us, that space is being taken up by grocery store expansion. Moreover, town center developments offering a mixture of retail and residential space have helped maintain a healthy balance between demand and supply.
“The Wheeling Town Center development is an outstanding example of a successful community-oriented, mixed-use development that creates a new destination,” said James Schutter, a Newmark Knight Frank senior managing director based in Chicago, as quoted in the report.
There are pockets of vacancy here and there, however. The Magnificent Mile shopping strip, on Chicago’s Michigan Avenue, now has a vacancy rate of 12 percent, the report says, triple its vacancy percentage in 2015.
By Edmund Mander
Director, Editor-In-Chief/SCT
