Chicago’s Magnificent Mile could see retail leasing activity double in 2026, pushing up rents as one of the nation’s top shopping avenues accelerates a comeback that began last year.
That is among the findings of a new report on the northernmost mile of North Michigan Avenue by local retail real estate brokerage Kirsch Agency.
The percentage of available retail space is projected to fall to 23.5% by the end of 2026, with more than 100,000 square feet of available space likely to be absorbed this year based on tours and ongoing lease talks, according to the report.
That would be a significant drop from peak availability of about 33.9% early last year and 28.5% at the end of 2025. Yet the reduced number would remain sky-high when compared with long-term figures, including a low of 3.6% in 2016.
The projected plunge in unused space in 2026 would be a major step toward the full recovery of the Mag Mile, which over the past several years has experienced several large store closures and weak demand.
“I think late 2024 was the bottom, and now the recovery will be pretty quick,” said Greg Kirsch, managing broker of Kirsch Agency.
One caveat is the potential effects of the bankruptcy of Saks Global. That is the parent company of brands including Saks Fifth Avenue and Neiman Marcus, which have large stores on the avenue.
“There are still a lot of headwinds, and the status of Saks Fifth Avenue and Neiman’s is a concern,” Kirsch said.
Different landscapes
The Kirsch Agency report, which divides the avenue into three zones, shows that the landscape differs almost block-by-block.
“It isn’t appropriate to think of the Mag Mile monolithically,” Kirsch said.
North of Chicago Avenue, an area that includes the former John Hancock Center skyscraper and Water Tower Place, availability is 40.5%, according to the report.
Availability in the middle zone is 23.8%, while the southernmost stretch — between Ontario Avenue and the Chicago River, an area that includes Tribune Tower and an Apple flagship store — has just 18.7% of its space up for grabs.
Expected big investments by the Water Tower and Shops at North Bridge vertical mall owners could provide a further boost to leasing throughout the street, Kirsch said.
Lean years
Retailer bankruptcies and pullbacks, changing shopping habits and local factors such as perceptions of crime were hurdles in recent years, with President Donald Trump even taking an apparent verbal shot at the avenue late last year.
Mag Mile leasing lagged in past years, even as other pockets of Chicago, including the luxury-focused Gold Coast just a short walk away, thrived.
But Mag Mile leases signed in 2024 and 2025 came from a wide range of tenants, including a Harry Potter-themed store, technology-driven experiences, clothing brands such as Mango, Uniqlo, Aritzia and North Face, and an expansion by the Paris-based operator of the 360 Chicago observatory.
The amount of available space also has fallen, with the Water Tower Place owner now looking to convert upper floors to non-retail uses.
Those factors add up to more tenants competing for fewer spaces, Kirsch said.
That could drive up net rents that fell from historic highs above $550 per square foot to below $250 last year, Kirsch said. Rents have increased to more than $300 in the past six months, Kirsch said.
“At the end of this year, we’re going to see a vastly different landscape for tenants seeking space,” Kirsch said. “There will be fewer available spaces and rents will have increased to $350 net.
“It will be a market where you have multiple users competing for each space. For tenants who are kicking tires and aren’t sure yet, the whole calculus will change.”