Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-The vacancy rate for specialty store space in the State Street/Wabash Avenue shopping district has nearly doubled in the past year to 24.6%, while the asking rental rate of $35.97 per sf is down 8.4%, according to Northern Realty Group Ltd.’s annual Downtown survey. However, that should not be taken as evidence that the area is on the ropes, according to Northern Realty Group president Bruce Kaplan, even though that compares to a tight 3.1% on North Michigan Avenue.

The overall State/Wabash specialty store space market swelled by 24.2% to 1.12 million sf as developers got reacquainted with a submarket that now has more college students than University of Illinois- Champaign/Urbana, Kaplan notes. The net result was 68,007 sf of net absorption.

“The trends on State Street and Wabash Avenue are actually healthier now than they have been in decades,” Kaplan says.

“Look at the success of the long-vacant former Woolworth’s store on North State, which has been leased to H & M, Nordstrom Rack and Walgreens, while Forever 21 has leased the 35,000 sf on South State,” Kaplan adds. “Commitments from these stores are clear signals that important, national retailers have locked onto State Street as a prime target in their expansion strategies.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.