Chicago Retail Market Report

Development slowdown positioned to aid backfilling. Chicago’s retail inventory will expand just 0.2 percent for the fifth straight year in 2025. Over two-thirds of deliveries are slated for the back half of this year, while 75 percent of the pipeline is pre-leased, keeping supply pressure minimal. Meanwhile, the metro’s vacancy stock expanded by 2 million square feet during the first half, as Big Lots, American Freight, CVS, Walgreens and other large format retailers exited spaces. Properties under 10,000 square feet still saw positive absorption, however, while those over 20,000 square feet accounted for most of the losses. Fortunately for available spaces, the average time to lease is holding near its trailing decade low at 9.3 months.