Chicago's Retail Real Estate Market Struggles to Bounce Back After Great Recession
Real estate group CBRE has pegged Chicago’s retail vacancy rate at 10 percent, according to a Crain’s report. The city’s retail real estate market has had a slow climb back from the Great Recession.
In 2010, vacancies hit 12.1 percent, nearly double the low 7.6 vacancy rate of 2006. Crain’s reports that developers are planning to finish just 1.06 million square feet of retail space in the Chicago area this year, an almost unprecedented low.
While the retail real estate market may seem to be limping toward recovery, there are more positive trends. Retail spaces that have grocery stores and restaurants seem to be thriving. On the other hand, retail space with clothing and electronics stores are having a tough time keeping up with e-commerce competitors, according to the report.
Retail vacancy rates vary across the city. Chicago’s downtown and North Side areas have a retail vacancy rate of just 3.8 percent. The southwest suburbs are also bucking the city’s overall trend with a retail vacancy rate of 5.4 percent. The northwest suburbs, south suburbs, and far west suburbs have higher vacancy rates. The northwest and south suburbs are at 12.1 percent, while the far west suburbs are at 14.3 percent.
Crain’s Chicago Business points out that as some retailers, like Sports Authority, are closing their doors others, like Ulta, are looking to grow their footprint in the Chicago area.