| Vacancies increased 20 bps and very few buildings sold or came online in the Q2 in the retail markets, Marcus & Millichap reports. M&M's Sean Sharko says the market is at a virtual standstill, with just a few buildings in the $3M-$5M range trading hands, mostly deals where the buyer could pay cash because there is little financing available for retail. The one new development in the city was the 200k SF Target in the Wilson Yard development in Uptown. Big tenants like Target are in the market, but are only looking for Main-on-Main locations, Sean says. (Not to be confused with Maine-on-Maine, a tell-all book written by our 23rd state. | |
| In the suburbs, Costco is working on two new stores—in Bolingbrook and Melrose Park, where recent upscaling has attracted retailers. Also being developed is Lockport Square, a Jewel-anchored power center, above. Suburban asking rents have slipped to $15.81 PSF, down half a percent from last year. In the city, asking rents rose 60 bps to $23.24 PSF, but Sean says there continues to be downward pressure on rents in the high $20s and low $30s. Free rent for a month has become a popular concession because many mom-n-pop retailers are looking for new space, but don't have the money for TI, which landlords are also unwilling to invest in. |
Retail Stagnates in Q2
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Melrose Park, Sean Sharko
