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Local firms say Chicago’s premier shopping district has a retail
vacancy rate of about 30%. Magnificent Mile Association
President and CEO Kimberly Bares admits Michigan Avenue is
dealing with challenges.
“Perception of crime, work-from-home trends and retail vacancies
have given us, we would say, more than our share of challenges.
Yet we very much believe we are experiencing a district on the
rise,” Bares said.
According to the Mag Mile Association, the area still tops the
Midwest in tourism and remains crucial to the economy.
“Twenty-one percent of the jobs that are in the city of Chicago
are in our district, and those jobs are especially important for
a variety of reasons. Number one, they are mostly in person,”
Bares said.
Bares added that the Mag Mile Association’s top priorities are
safety and security, as well as retail vacancy.
Business leaders are looking for downtown shopping to bounce
back, after years of critics saying that Chicago’s neighborhoods
suffered at the expense of downtown.
Bares said the divide between the neighborhoods and downtown is
a myth.
“What’s good for downtown can be good for the neighborhoods.
What’s good for the neighborhoods can be good for downtown,”
Bares said.
Some neighborhood districts have flourished while the retail
vacancy rate on the Magnificent Mile hit 30%, and the Loop’s
vacancy rate is over 20%. Mid America Real Estate principal Stan
Nitzberg said neighborhoods that are busy now could also
experience downturns.
“We have to be cognizant of the strength of some of the
neighborhoods, but what’ll happen in those neighborhoods is that
the rents will get to a point against the productivity where
that’ll cycle, too,” Nitzberg said.
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