In the heart of Chicago’s North Michigan Avenue, one of the nation's most high-profile shopping areas, a change of major tenants is spotlighting the area's dramatically new look — and a shift playing out in prominent retail districts around the country.
The property where retail experience pioneer Nike Town opened in 1992 is bracing for changes: Jeans maker Levi’s has signed a lease to open a two-level, approximately 9,000-square-foot store at 663 N. Michigan Ave. next to that multilevel Nike store in a move from a nearby building, according to people familiar with the situation.
It comes as Nike is in advanced talks to move down the street to a new, two-level space at 540 N. Michigan, those people said. That deal has not been completed and still could fall apart if Nike chooses another option, which could include staying in its longtime space.
The Nike Town property’s upcoming changes coincide with a broader reimagining of the 1-mile stretch of Michigan Avenue running north from the Chicago River and known as the Magnificent Mile.
It's part of a broader recalibration underway across major U.S. retail corridors as legacy brands reassess oversized flagships. After years of expansion fueled by novelty and foot traffic, many apparel companies are now favoring smaller, more flexible stores that prioritize visibility and engagement over sheer square footage — a shift reshaping streets from Chicago’s Magnificent Mile to New York’s Fifth Avenue and other marquee shopping districts.
It also comes as crowd-attracting, interactive experiences such as the concept that Nike opened in Portland, Oregon; Chicago, and New York more than three decades ago have become far more common.
In Chicago, plans for a 60,000-square-foot Candy Hall of Fame Experience at 830 N. Michigan Ave. were unveiled last week, joining the likes of a Harry Potter-themed store that opened on the street last year.
Those deals are part of a wave of leasing activity that has begun lifting what's known locally as the Mag Mile from doldrums in recent years, pushing up rents and leaving some retailers to scramble for prime spaces.
CoStar News reported this week that American Eagle Outfitters plans to open a flagship for three of its store concepts next year at 600 N. Michigan.
The recent wave of relocations and new tenants on the avenue have been boosted by crowd-attracting experiences such as the Museum of Ice Cream and The Hand & The Eye, a magic-themed space just off the avenue.
“That gets people on the street, which will support shopping and buying,” said retail broker John Vance of Stone Real Estate. He is not involved in the Nike or Levi’s deals.
“Apparel stores love traffic,” Vance said. “If you’re a retailer or broker, you no longer have the pick of the litter. Spaces are filling up. The avenue is strong, and it’s continuing to get stronger.”
The Levi's deal is a relocation from 5,555 square feet at 600 N. Michigan.
Nike and San Francisco-based Levi Strauss & Co. did not respond to requests to comment from CoStar News.
If Nike finalizes a deal at 540 N. Michigan, the Beaverton, Oregon-based shoe and sports apparel giant would take over an approximately 40,000-square-foot space previously occupied by Forever 21. That long-vacant space, part of the larger Shops at North Bridge complex, is smaller than Nike’s almost 57,000-square-foot space now.
But a move would allow Nike to take over a high-visibility corner and refresh a concept that was revolutionary when it opened at 669 N. Michigan during the heyday of Chicago Bulls basketball player and Nike star Michael Jordan.
The Shops at North Bridge complex has been owned by previous lender Pacific Life Insurance since late 2024, when the Alaska Permanent Fund surrendered ownership via a deed in lieu of foreclosure.
Nike Town gained widespread attention when it opened what was described at the time as “retail theater” by the tenant.
The initial space included a basketball court, sculptures of famous athletes hanging from the ceiling, the sounds of bouncing balls playing on the sound system and images of Nike endorser Jordan playing on dozens of TV screens. There also was a display outlining the history of the Air Jordan shoe line.
Longtime owners
Connected buildings at 663, 669 and 673 N. Michigan were sold to New York-based Morgan Stanley and Meyer Bergman — a London-based private equity investment manager now known as Mark Capital Management — for $295 million in late 2015.
Nike’s future has been a frequent topic of discussion on the Mag Mile since 42nd Ward Alderman Brendan Reilly informed constituents last fall that Amli Residential was considering redeveloping the Nike site with a 56-story, 498-unit residential tower with retail at the base. Amli is part of Morgan Stanley.
Morgan Stanley declined to comment. Pacific Life did not respond to a request to comment.
The property’s owners have never publicly commented on the high-rise plan, nor have they moved to have the plan reviewed by the Chicago Plan Commission as part of the process to obtain zoning approval.
Levi’s lease is an apparent indication that the owners are no longer considering a larger redevelopment of the site. That deal filled a space previously occupied by tenants including Garmin.
JLL brokers representing the landlord recently have been marking the Nike space as available to new tenants.
For the record
The landlord at 663, 669 and 673 N. Michigan Ave. is represented by JLL brokers Peter Caruso and Joaquin Manriquez. The Shops at North Bridge owner is represented by CBRE brokers Luke Molloy, Danny Jacobson and Stephen Ansani. Nike is represented by CBRE’s Molloy. Levi’s was represented by Kirsch Agency broker Greg Kirsch.