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New data shows Loop area retail vacancies ticked down in 2025,
marking the second straight year of such development and giving
raised hope to some that things may finally be settling.
The Loop retail vacancy rate in 2025 fixated at 28.53%, down
from 29.76% the year before as the State Street area welcomed a
Gap Factory Store, Panera Bread and a Barnes & Noble.
“In the last quarter we had 2 million people come down to enjoy
largely arts and cultural amenities in The Loop, which is kind
of our secret sauce” Edwards told The Center Square. “That's
going to continue to drive more investment in storefronts. The
people are coming back on public transportation, which would
indicate that more people are coming downtown, spending more
money, spending more time.”
Edwards adds all the changes are easy to see.
“We're not going to be a 9 to 5 predominantly office market,” he
said. “There's 45,000 people living in The Loop. There are all
these visitors coming down for arts and culture. We are a
national tourist destination. We have new amenities like the
Riverwalk and of course the lakefront. There's lots of reasons
to come downtown; it’s not just a 9-to-5 job. The Loop is for
everybody and for every reason.”
New restaurants across the area are also designed to appeal to
tourists, with a Portillo’s and Hello-Kitty themed café among
them.
“Cities like Chicago are all doing whatever they can to
accelerate the market and I think maybe 70% of this is just
property owners deciding to do something with their building, or
employers deciding that their employees have to come back to the
office, or a restaurant just saying I'm going to take a chance,”
said Edwards. “We're going to be announcing programs to assist
folks with some storefront renovations so there’s kind of a mix,
but I would say it's largely the market is finally coming back
to State Street.”
With the flow of area office workers also on the rise, Edwards
adds sharp increases in foot traffic are also making a
difference.
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