Half a decade after shutting down a flagship store during a devastating downturn on Chicago’s North Michigan Avenue, clothing chain Gap is plotting a return as the city’s best-known retail corridor appears poised for a comeback.
Gap is in advanced talks to fill an 8,325-square-foot vacancy at 700 N. Michigan Ave., according to people familiar with the situation.
The deal has not been completed and still could fall apart. If the lease is completed as expected, it would add to a run of recent deals on the one-mile stretch of North Michigan Avenue that also is known as the Magnificent Mile, one of the most high-profile shopping corridors in the United States.
Gap’s planned return to the avenue comes early in what is expected to be an active year for leasing, with availability expected to fall to 23.5% — down from a peak of 33.9% early last year — by the end of 2026, according to a Kirsch Agency report.
Recent leases have included Spain’s Mango and Japan’s Uniqlo, two retailers that also previously left Michigan Avenue, committing to large new spaces.
Other significant moments in recent years have included Aritzia taking over the former Gap space, a Harry Potter-themed store opening to large crowds at 676 N. Michigan and Alo Yoga filling part of a former Disney Store space at 717 N. Michigan.
Most recently, Italian fashion brands Intimissimi and Falconeri struck a deal to take over the former Cartier space at 630 N. Michigan.
It’s unclear when Gap plans to open the new store or what led the company back to Michigan Avenue.
The company and the property’s owners, New York-based firms Ashkenazy Acquisition Corp. and Aurora Capital Associates, did not respond to requests for comment from CoStar News.
Different time
The picture seemed bleak when Gap shut down a three-level standalone store at 555 N. Michigan Ave. in January 2021, less than a year into COVID-19.
Although the closure was part of a broader move by San Francisco-based parent company Gap Inc. to close 350 Gap and Banana Republic stores throughout the country, the Michigan Avenue closure came at a precarious time for the Chicago shopping district.
Michigan Avenue shopping tourism was at a virtual standstill because of the pandemic and multiple waves of property damage and thefts that followed the death of George Floyd in Minneapolis. Macy’s also closed its sprawling store within the Water Tower Place mall in early 2021.
Hurdles still remain for a full Michigan Avenue recovery, including high vacancy in the Water Tower and Shops at North Bridge malls.
The space that Gap is now planning to take over at 700 N. Michigan previously was a T-Mobile store that shut down in 2023.
The retail space, whose other tenants are Saks Fifth Avenue and Zara, is at the base of a 49-story residential tower at 100 E. Huron St.
For the record
The tenant is represented by Stone Real Estate broker John Vance and Newmark broker Ariel Schuster. The landlord is represented by JLL brokers Peter Caruso and Steve Schwartz.