Chicago Retail Market Report

Another record set in 2025. Vacancy decreased to 4.8 percent in 2024, marking eight consecutive quarters of decline and undercutting the previous low set in 2018. This tightening market coincided with a nearly 80 percent drop in deliveries, as rising costs and tighter financing constrained development — trends that will continue, with only a modest rebound expected this year. Suburban submarkets are capturing more move-ins due to higher household incomes and streamlined leasing and permitting processes. Leases here favor fitness and lifestyle concepts in shopping centers of various scale. That said, retail in downtown submarkets is gaining momentum, fueled by rising transit ridership and increased foot traffic from residents returning. The completion of 1000M in 2025 will add high-income residents near Grant Park, boosting demand for retail and dining, while the Red and Purple Line modernization will enhance accessibility, supporting foot traffic. With a deep labor pool and limited new retail development, Chicago’s is well positioned for sustained retail growth in 2025.