Chicago retail market report
Q2 2026
Chicago is one of the largest retail markets in the U.S. and capitalizes on a diversified industry pool and employment base. Chicago is anchored by historic retail corridors with consistent population and employment health. While downtown has seen lower visitation, the city has one of the most compressed multi-family pipelines. Established suburban markets have pushed necessity-based development to the market’s exterior, while adaptive reuse and redevelopment remain common internally. While geographically and demographically dispersed, key industry growth and integrated transit continues to bolster a retail market that requires micro-market expertise.
Retail product under construction
Retail construction activity has stalled in the wake of the pandemic, down over 70% from 2018, which has helped balance the market. Additionally, existing development activity has centered on build-to-suit opportunities. Sizable developments are limited to suburban markets, while Fulton Market and the northern neighborhoods command the most attention within the city limits.
Vacancy rate as of Q2 2026
The market has experienced a modest increase in vacancy from 4.9% at year-end 2024 to 5.4% in Q2 2026. While above national averages, Chicago’s vacancy has stabilized with limited impact from development. The elevated vacancy has created unique opportunities for new tenants. Notably, the Candy Hall of Fame and American Eagle outfitters have found their home on North Michigan Avenue.
Average market asking rent as of Q2 2026
Asking rent in Chicago’s retail market has stuttered from a period of elevated growth between 2023-2025. Market participants have noted elevated interest from health/wellness concepts, lifestyle/aesthetic retail and experiential or service-related uses that are resilient to online substitution. Limited new supply and submarket supply correction should stabilize rent growth for quality space.
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