Chicago's Vacant Retail Space: Big-box gap on Mag Mile

Crain's Chicago Business reports:

There are more vacant storefronts around the Magnificent Mile than at any time in the past 16 years, a sign that even Chicago's premier shopping strip isn't immune to the forces buffeting the broader retail industry.

And things are likely to get worse before they get better, as retailers vacate big-box-style storefronts in the area this year while few such merchants seek new space.

"I think you're going to see the big-box retailers gravitate away from Michigan Avenue," says Bruce Kaplan, senior vice-president with the Chicago office of real estate services firm CB Richard Ellis Inc. and co-author of an annual survey on Mag Mile retail vacancies.

The retail vacancy rate in the North Michigan Avenue corridor surged to 6.3% in the year ended April 30 after hovering just above 4% for the past four years, according to the survey. The last time the rate was higher was in 1992, when it stood at 9%.