A “booming” apartment market has retailers filling empty storefronts, according to a report from real estate firm Marcus & Millichap.
The Chicago metro area retail vacancy rate is expected to drop to 7.7 percent this year, the lowest it’s been since late 2007, according to a recent report on Chicago’s retail real estate market.
Within the city itself, about 5.4 percent of retail space was vacant in the second quarter of this year, compared with 8.5 percent in the suburbs, according to Marcus & Millichap. Average asking rents citywide fell 2.7 percent over the last year to $26.42 per square foot, but in-demand neighborhoods such as the Gold Coast, Old Town, West Loop and River West all saw double-digit rent spikes.
The report attributed retailers’ willingness to snap up space to job growth and new multifamily housing development that could bring more potential customers.
“The trend toward high-density living bodes well for the broader market, particularly for retailers who can adapt to shifting shopping preferences and cater to a millennial consumer,” the report read.
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