Chicago retail development headed for historic low
Development of new retail space in the Chicagoland area this year will be less than a million square feet for the first time in more than three decades, according to a report from Mid-America Real Estate Corporation.
The 2018 version of the company’s annual Chicagoland Shopping Center Report noted a 32% decrease in development from 1,536,000 sq. ft. in 2016 to 993,600 sq. ft. this year. Since hitting its peak in 2007, retail development in the metro area has decreased by nearly 90%, marking the lowest production in the report’s 36-year history.
“The reality is that, for the foreseeable future, shopping center development is not expected to re-evolve,” said Andy Bulson, Mid-America principal and author of the report.
Regency’s suburban Vernon Hills project is the sole junior-box-anchored center planned for Chicagoland this year. The 252,000-sq.-ft. Whole Foods-anchored project will also include REI, Nordstrom Rack, and Home Goods.
Six of last year’s 13 new developments included grocery stores, and three of them included a Mariano’s market, an expanding local concept. Wisconsin-based grocer Woodman’s Market plans five new store openings in the area, the first being a 275,000-sq.-ft.Woodman’s Market set to open this fall in Buffalo Grove.
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The 2018 version of the company’s annual Chicagoland Shopping Center Report noted a 32% decrease in development from 1,536,000 sq. ft. in 2016 to 993,600 sq. ft. this year. Since hitting its peak in 2007, retail development in the metro area has decreased by nearly 90%, marking the lowest production in the report’s 36-year history.
“The reality is that, for the foreseeable future, shopping center development is not expected to re-evolve,” said Andy Bulson, Mid-America principal and author of the report.
Regency’s suburban Vernon Hills project is the sole junior-box-anchored center planned for Chicagoland this year. The 252,000-sq.-ft. Whole Foods-anchored project will also include REI, Nordstrom Rack, and Home Goods.
Six of last year’s 13 new developments included grocery stores, and three of them included a Mariano’s market, an expanding local concept. Wisconsin-based grocer Woodman’s Market plans five new store openings in the area, the first being a 275,000-sq.-ft.Woodman’s Market set to open this fall in Buffalo Grove.
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