Global Retail City Profiles United States of America


Chicago


Chicago is the cultural capital of the Midwest, with the third largest population in the United States, following New York and Los Ange- les. After the Chicago Cubs won the World Series in 2016 - the first time in 117 years- the city saw an influx of tourists, benefitting the growing retail scene. Beyond the avid sports fans, Chicago is also home to a growing millennial population that are keen on experi- ential retail. Tech brands like AT&T and T-Mobile have opened up brand stores on the famed Michigan Avenue while other millennial brands have chosen to open on emerging corridors throughout the city, hoping to capture the authenticity their brands identify with. Investors and tenants alike look to the Chicago retail corridors for new urban placements given the affordability of the market rela- tive to other gateway cities in the US and Canada.


Prime Urban Retail Chicago’s retail scene is concentrated in the Michigan Avenue corridor, Oak Street corridor and State Street corridor. The Michigan Avenue corridor is known as the primary shopping attraction for those visiting the city and is currently experiencing southern sprawl towards Grant Park, driven by the new Apple flagship located on the Chicago River. The Oak Street corridor, located adjacent to the northern end of the Michigan Avenue corridor, is shifting from strictly luxury tenants like Versace and Dior which recently entered the market, to luxury lite and high priced tenants like Aritizia and Shinola. Meanwhile, the State Street corridor is further solidifying itself as the discount concept corridor with the addition of the Banana Republic outlet and the expansion of the Zara footprint located at Block 37.


Shopping centres Chicago is home to one of the United States’ first urban vertical malls: The Water Tower Place located directly adjacent to the Chicago’s famed Water Tower building on the Michigan Avenue corridor. Despite fluctuations in the mall market, the Water Tower has remained stable, with a constant stream of tourist shoppers and the inclusion of experiential retail concepts like the American Girl Doll Place flagship and urban food hall, Foodlife. There are plenty of malls within the peripheral suburbs boasting exceptional retail tenants. Oak Brook Center, Woodfield Mall, Westfield Old Orchard Mall, Orland Square Mall all perform well and have a constant stream of tenants looking to enter the retail mix.


Shopping center Woodfield Mall Oakbrook Center


Westfield Old Orchard Orland Square Mall Water Tower Place


Fashion Outlets of Chicago Shops at North Bridge Block Thirty Seven


Source: JLL 2018


Opening year 1971 1962 1956 1977 1974 2013 2000 2009


Size (sqft) Location 2,200,000 Schaumburg 2,120,000 Oakbrook 1,814,000 Skokie


847,000 Orland Park 819,000


Chicago


529,000 Rosemont 378,000 305,000


Chicago Chicago


Population 9.5m


Prime rent (sqft per year)


US $420 Prime rental information for Michigan Avenue Key indicators Population (‘000s No.)


GDP per capita (US$, real, PPP) GDP Forecast 2018-2022 (% pa)


Retail Sales Forecast 2018-2022 (% pa) Global CBRA rank (out of 140 cities)


9,518


$63,616 1.9 2.3


=25th


Source: JLL, Oxford Economics (May 2018) Global CBRA Rank = Global Cross Border Retailer Attractiveness Rank


Key retail entrants


Banana Republic Factory Canada Goose Benihana


Key tenants


Macy’s, Lord and Taylor, Foot Locker, The Gap, Apple Neiman Marcus, Nordstrom, Burberry, Victoria’s Secret Bloomingdale’s, Crate & Barrel, Nordstrom


Macy’s, H&M, Victoria’s Secret, Apple, bareMinerals Macy’s, Banana Republic, Victoria’s Secret, Foodlife Forever 21, Saks Fifth Avenue Off 5th, Nordstrom Rack Nordstrom, Hugo Boss, Charming Charlie


Zara, Anthropologie, Latinicity, AMC Dine-in Theaters Copyright (c) JLL IP, INC 2018


Starbucks Roastery Ulta Nutella Café


Rental growth outlook


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