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CHICAGO-Specialty store vacancy in State Street/Wabash Avenueretail district is nearly twice the average for the entire marketat 20.9%, but that is an improvement from the 24.6% level hit lastyear. In addition, Northern Realty Group, Ltd. reports in itsannual survey that asking rental rates rose 5% to $38.82 persf.

The State Street/Wabash Avenue specialty store vacancy ratecompares to 7.1% for similar space along Michigan Avenue, accordingto Northern Realty Group. Including department store space,however, vacancy in the State Street/Wabash Avenue retail area fallnearly two percentage points to 7.3%. While condominium conversionsare bringing new customers to Downtown, the retailers themselvesdeserve some of the credit for the retail market's strength, saysNorthern Realty Group executive vice president Michael Shields.