State Street Chicago
Description
Chicago’s Resilient Retail Corridor: Where History and Reinvention Collide Once known as the beating retail heart of Chicago, State Street remains a vital shopping destination in the Loop. Despite recent challenges, including the impacts of the pandemic and shifts in work patterns, this historic corridor is home to major national chains like Macy’s, Zara, Nordstrom Rack, Sephora, Primark, Saks Off Fifth, Foot Locker and JD Sports. Concentrated between Randolph and Monroe, this stretch still holds a big appeal for both locals and tourists, even as it navigates a changing retail landscape. The State Street Experience State Street has a dynamic and thrilling history, dating back to the late 1800s when it was famously home to department store giants like Marshall Field’s, which is now Macy’s flagship location. Recent years have seen fewer new openings and slower recovery post-pandemic. Unlike Michigan Avenue, State Street offers a more budget-friendly shopping experience, making it accessible to a wider range of shoppers. Its blend of major national retailers, long-standing department stores and proximity to the Theatre District creates a unique mix of commerce and culture. The street remains an essential part of the Loop, attracting a mix of office workers, tourists exploring Chicago’s historic core and students from nearby universities, like DePaul. Chicago’s Resilient Retail Corridor: Where History and Reinvention Collide Once known as the beating retail heart of Chicago, State Street remains a vital shopping destination in the Loop. Despite recent challenges, including the impacts of the pandemic and shifts in work patterns, this historic corridor is home to major national chains like Macy’s, Zara, Nordstrom Rack, Sephora, Primark, Saks Off Fifth, Foot Locker and JD Sports. Concentrated between Randolph and Monroe, this stretch still holds a big appeal for both locals and tourists, even as it navigates a changing retail landscape. The State Street Experience State Street has a dynamic and thrilling history, dating back to the late...Read more
Stone Real Estate recently released its Annual Chicago Loop Retail Analysis for 2024, (https://bit.ly/LoopRetail) which was featured in Crain’s Chicago Business (https://bit.ly/CrainsBiz). There are three key points from this year’s findings with the first point being Gap Factory signing its lease at 17 N. State Street. Gap Factory’s entry back on to State Street is seen as the beginning of a positive trend toward more value retail concepts considering State Street. State Street has struggled during this Work From Home (WFH) period, as The Loop’s office density generates a substantial amount of the pedestrian traffic and shoppers on State Street. With the pedestrian count back to near 2019 levels and the WFH trend on a slow and steady decline, State Street’s rebound has hopefully begun. More to come regarding second and third points from the 2024 survey. Find Stone Real Estate's Chicago Annual Loop Retail Analysis, here: https://bit.ly/LoopRetail.
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Local Expert Analysis
Market Positioning and Financial Metrics State Street’s retail landscape is currently defined by its affordability, with gross rents ranging from $50 to $75 per square foot. Vacancy rates exceed 20%, reflecting ongoing challenges in tenant retention and attraction. However, recent acquisitions of buildings at a discount by new investors signal a potential shift. These new owners are likely to offer reduced rents, which could make State Street more attractive to emerging brands and national chains seeking a central location in Chicago. Customer Demographics and Foot Traffic The street primarily draws young professionals, students, and tourists. Foot traffic is highest during weekday office hours, fueled by nearby businesses and universities. Nighttime traffic remains moderate, but spikes occur around the Theatre District and surrounding nightlife. While weekend traffic is typically lower, events like “Sundays on State” and holiday shopping drive visitor peaks, boosting local retail activity. Future Trends and Market Outlook The next 12 months for State Street are expected to bring slow but steady improvement. As more businesses require workers to return to the office and tourism continues to rise, leasing activity is likely to pick up, driven by more affordable rent offerings from new building owners. While the street faces stiff competition from nearby corridors like Michigan Avenue, lower rents could position State Street as a more viable location for both emerging and established brands looking for a central presence in Chicago. Conclusion State Street’s resilience is a testament to its role as a core retail corridor in Chicago’s Loop. The street’s historic character, combined with potential new developments and more affordable leasing outlooks gives brands perhaps an opportunity to break into the Windy City’s scene. With its blend of cultural landmarks, retail staples, and community events, State Street remains a vital part of Chicago’s urban fabric — one that is according to current trends as of 2024 is poised for a gradual yet meaningful revival Market Positioning and Financial Metrics State Street’s retail landscape is currently defined by its affordability, with gross rents ranging from $50 to $75 per square foot. Vacancy rates exceed 20%, reflecting ongoing challenges in tenant retention and attraction. However, recent acquisitions of buildings at a discount by new investors signal a potential shift. These new owners are likely to offer reduced rents, which could make State Street more attractive to emerging brands and national chains seeking a central location in Chicago. Customer Demographics and Foot Traffic The street primarily draws young professionals, students, and tourists. Foot traffic is highest during weekday office...Read more
New Developments
Several buildings along State Street have entered receivership, paving the way for new investors to potentially reposition these properties with more competitive leasing options. This could attract both new tenants and national brands looking to capitalize on lower rent costs. A reason to carefully evaluate the landscape for brands — given that the street’s current business makeup is still up in the air. The proximity to the Theatre District and ongoing commercial activity will play a crucial role in State Street’s retail recovery, as more office workers and tourists return to the Loop.
