MARKETPLACE (pg 22):
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Chicago retail market sees strategic growth as developers adapt to changing trends By Brandi Smith
Photo courtesy of Tucker Development.
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etail development and investment in the Chicago area are undergoing significant changes as developers, investors and retailers adapt to evolving market demands. While certain urban areas like the Loop face persistent challenges with high vacancy rates, suburban markets and neighborhood shopping districts continue to draw attention, buoyed by increasing consumer interest in local and experiential retail. “Every site is evaluated independently,” said Richard Tucker, CEO of Tucker Development. “Our Fulton Market redevelopment worked out very well, now fully
leased. Certain sites make more sense for retail than others.” Retail vacancy rates in Chicago’s Loop have continued to rise, hitting over 30% in 2023, the highest in more than two decades. However, other parts of the city and suburbs are faring better, thanks in part to strategic mixed-use developments and increased interest in local shopping experiences. Tucker’s approach to mixed-use properties, combining retail with residential and office space, has helped counter some of the challenges faced by traditional retail spaces.
“Densely populated areas, with moderate to good incomes, usually provide opportunities,” he said. “The key is to determine the scope and mix of the retail.” National retailers are also becoming more selective in their site choices, prioritizing prime locations in high-traffic areas. “If a location is not considered prime, they are often electing to pass on it rather than push forward with a non-ideal site,” said Danny Jacobson, Senior Vice President at CBRE. RETAIL (continued on page 18)