Retailers Zero In On River North As Foot Traffic, Development Spark Momentum

More and more developers and tenants have been calling retail broker Deena Zimmerman to ask about opportunities in a resurgent submarket: River North. 

The sector is on a roll in the neighborhood, which boasts a lower vacancy rate than the city’s darling, Fulton Market. Buoyed by a diversified mix of asset classes that drive foot traffic around the clock, River North has fared better than other areas of a central business district dominated by office buildings that have struggled as workplace visitation has fallen, Chicago retail professionals told Bisnow. 

“I have retailers who are now laser-focused on River North where, I swear to God, this time last year, they wouldn't have been,” said Zimmerman, a principal at Baum Realty Group. “Something's happening.”

River North’s retail vacancy rate at the end of 2024 was about 20.5%, according to a report from Stone Real Estate.

While that sounds high, the submarket compares favorably to other trade areas in the CBD. The Mag Mile’s vacancy sat at 25.5%, the Loop's at 29.8% and Fulton Market’s at 20.7%. 

The area has benefitted from a broad customer base of residents, renters, hotel guests, office workers and tourists. Restaurants make up almost two-fifths of River North’s retail offerings, according to the report. 

“The key thing about River North, as it relates to all these CBDs, is that's the model they're trying to get to, they being these landlords of a CBD,” said John Vance, a principal at Stone Real Estate. “It's very diverse in its real estate assets.”

That diversification of asset classes has been going on for 30 to 40 years, Vance said, an advantage not enjoyed by some of the city's other struggling retail districts.

River North's 2024 vacancy rate actually increased from 17.1% in 2023, but that doesn’t encompass the area’s momentum in 2025, retail professionals said. In addition, a sizable chunk of last year's vacancy was attributable to a 30K SF former Whole Foods space that Aldi has now leased up, Vance said. As a result, the vacancy rate dropped to 19.6% this quarter.

That's a strong percentage relative to other portions of the CBD that were hit hard by the pandemic and its fallout, but it still lags behind some of the city’s neighborhood retail.

Armitage Avenue, bounded by Sheffield to the west and Halsted to the east, posted a 4.3% vacancy rate in 2024, while Southport Avenue, bounded by Addison Street to the north and Roscoe Street to the south, sat at 0%, according to Stone.

Yet new housing activity is on an upswing in the area, which tends to draw retailers. Zev Salomon is planning to build a $50M, 149-unit apartment building on a big River North surface lot. A joint venture between Path Construction and WindWave Real Estate has acquired the upper stories of 111 W. Illinois St. and will convert the space into 153 new luxury apartments.

Zimmerman said developer confidence in River North, as evidenced by the new construction going up in the area, is motivating tenants to want to move in. The neighborhood's strong multifamily presence and status as a tourist hub due to its proximity to downtown drives a lot of retail tenant traffic, too.

There’s been a lot of pent-up demand for space in desirable areas following a lack of new retail construction, Zimmerman said. Retailers she represents, including a boutique fitness shop and a pair of fast-casual restaurants, see the area’s momentum and are interested in some of the high-quality space. 

River North is a “dynamic” submarket overall and remains an area that attracts a lot of food and beverage users, said Danny Jacobson, senior vice president at CBRE. Activations along the Riverwalk have also bled into a lot of the success of the retail offerings in the area.  

“A lot of operators in those various categories want to be close to both the daytime population that's working in the submarket and also those that live in the area,” Jacobson said. “You get the best of both worlds.”

Retailers are starting to make plans for 2026 and 2027, and as they’re deciding where to expand in the city, they can project what new buildings will be open to provide a solid customer base to depend on in River North, Zimmerman said. 

“People are following where the residents are and where the things are happening,” she said. “Where's the Whole Foods? Where's the fine dining? Where's the fast-casual? I've definitely seen this positive resurgence and confidence in the neighborhood again.”