Crain’s video highlights the demise of the Armitage Avenue retail corridor.

The Armitage Avenue retail corridor, between Halsted and Racine, has become another casualty due to greedy real estate developers and real estate owners.  With retail rents at an affordable rate, Armitage Avenue was able to attract droves of mom and pop businesses that appealed to, not only Chicagoans, but tourists from around the world.  These boutique shops and low rents made Armitage Avenue one of the most sought after destinations to go shopping and to open up a store respectively. 

But during the residential and retail boom years ago, the owners of the retail spaces were able to jack up rent to a level business owners couldn’t afford.Now that the economy has plummeted, businesses could no longer afford the sky-high rents and now Armitage Avenue is filled with vacant storefronts or banks. 

Take a look at the Crain’s Chicago Business video by clicking HERE!

New Retail Space at Presidential Towers Taking Shape!

No photos yet, but from driving by on Jefferson and Monroe Streets, you can definitely tell construction is fully under way for the new retail spaces at Presidential Towers.  You can even see a new addition on the roof of the parking area for what could be part of the new Fitness Formula Club (FFC)  gym. 

Has anyone walked/driven by there to see for themselves?

The construction of new retail hits a 25 year low.

Sure this sounds really doom and gloom but when you think of it, this was bound to happen, it just took a bit longer to happen than the housing fallout.  Industrial, commercial, retail, and residential sectors don’t all fall or reach a low at the exact same time but just like the residential market, the retail market will get better soon.  Not sure about you, but I still see stores and restaurants packed full of people spending money so I’m not too worried.

Retail construction hits 25-year low

By: Thomas A. Corfman and Colleen Lobner

 Jan. 25, 2010

(Crain’s) — The construction of new shopping centers in the Chicago area continued to grind down in 2009, falling to its lowest level in a quarter century.

Retail construction dropped plunged 53% in 2009, to 1.7 million square feet, compared to 3.7 million square feet in 2008, according to an annual report by retail real estate brokerage Mid-America Real Estate Corp.Last year’s total was the lowest since 1984, when 1.6 million square feet of retail properties were completed.

Construction has plummeted nearly 80% since 2007, when nearly 8.4 million square feet was completed as many retailers were expanding rapidly to catch up with new residential development. The 2007 total was the highest since 1983.

Since the recession began in late 2007, consumers have cut back their spending, the retail industry has undergone a dramatic retrenching and construction lenders have little appetite to finance new developments of any type.

In 2010, the pace of shopping center development will remain unchanged at 1.7 million square feet, and will likely remain at that historically low level for several years, says Andrew Bulson, a senior vice-president with Oakbrook Terrace-based Mid-America.

In 2011, the pace of development will rise only “marginally,” he says.

“It’s perhaps the new normal for the foreseeable future,” he says.

Retailers still smarting from the recession are slow to expand and when they look to add locations are likely to focus on existing properties where rents will be cheaper. And amid the uncertain recovery of the national economy, investors are skeptical of backing new retailing ventures.

“The pendulum has completely swung in the opposite direction,” says developer Evan Oliff, president of Chicago-based Preferred Development Inc. “It’s about time….”

Read the full Crain’s Chicago Business article by clicking HERE!

Chicago’s Michigan Avenue close to landing a Nordstrom Rack.

Good news for Michigan Avenue since their vacancy rates have reached a high not seen since 1992.  With more and more mainstream stores, Best Buy is a big one, Michigan Avenue has lost a lot of its international appeal to a lot of people and a Nordstrom Rack isn’t going to help at all.  The only other Nordstrom Rack that I know of is located on State Street next to the H&M store.  I actually like to go shopping there, mostly because their guys shoes are pretty cheap.

Mag Mile close to landing Nordstrom Rack

By: Eddie Baeb Jan. 06, 2010

(Crain’s) — Department store chain Nordstrom Inc., best known for its wide array of shoes and its high-level customer service, is looking to open one of its off-price outlets along the Magnificent Mile.

The Seattle-based retailer has a letter of intent to lease about 30,000 square feet for a Nordstrom Rack store at the long-vacant CompUSA space just off Michigan Avenue at the corner of Chicago Avenue and Rush Street, a source says.

While the deal is not yet final, it stands to be the biggest retail lease in the Mag Mile region since fall 2007, when Spanish discount fashion giant Zara signed up for its new three-level, 33,838-square-foot store at 700 N. Michigan Avenue.

The Nordstrom Rack deal also would bolster a trend many years in the making that has discount-oriented big-box stores taking up more Mag Mile real estate after already saturating the nation’s suburban retail landscape.

“What can I say? Quite honestly, it’s happened,” Jacqueline Hayes, president of the retail brokerage firm Jacqueline Hayes & Associates Ltd., says of the trend.

Ms. Hayes, who focuses on upscale retail, says she knew Nordstrom Rack had been looking at the space but didn’t know there was a letter of intent.

“It’s off the Avenue, so I’d be more in favor of that than having it face on the Avenue.”

The lease also comes at a time when the Mag Mile’s vacancy rate stands at 7.2%, highest since 1992, according to an annual survey of the region compiled last spring by brokerage firm CB Richard Ellis Inc.

A representative of the building’s owner, Spanish billionaire and Zara founder Amancio Ortega, didn’t return a call seeking comment. Bruce Kaplan, a senior vice-president with the Chicago office of CB Richard Ellis Inc. who is marketing the space for Mr. Ortega’s investment firm, Ponte Gadea S.L., declines to comment.

A spokesman for Nordstrom, which opened a Mag Mile department store in 2000 and a downtown Nordstrom Rack on State Street three years later, says there’s been no announcement or signed lease for a new store in Chicago….

Check out the full Crain’s Chicago Business article by clicking HERE!

Epic Burger expanding to North Avenue! I LOVE Epic Burger!

Ever been to Epic Burger’s original location in the South Loop/Printers Row neighborhood?  Well, Epic Burger, located at 517 S. State Street in the mega-dorm has become so successful that they’re planning on expanding to the North Avenue retail area at 1000 W. North Avenue. 

Epic Burger goes with the whole sustainable and going green route and their food is, for the most part, all natural.  Plus, Epic was pretty smart to open up their restaurant on the ground floor because I would think almost any good restaurant would do well when there’s a couple thousand hungry college kids around.

Chicago Gourmet Burger Brand Expands

[2009-12-18]   Epic Burger is set to open its second location in Spring 2010 at 1000 West North Avenue in the former Transitions Bookplace in Lincoln Park. The first location launched in Chicago’s South Loop neighborhood in May 2008 and introduced Chicago to “a more mindful burger”.

In a time when authenticity and value is top of mind, Epic Burger offers its customers a better burger experience. The new location will introduce Lincoln Park customers to a mindful menu that features 100 percent all natural, never frozen, hand-packed beef and turkey burgers, all-natural chicken breasts and portabella mushroom sandwiches, all cooked fresh to order. Customers can also choose from unique flavor additions like: cage-free organic fried egg, nitrate free bacon, and all natural cheeses. Epic Burger buns are baked fresh daily and have no preservatives or artificial ingredients. Fries are made with fresh, hand cut potatoes cooked with zero trans fats and seasoned with pure sea salt. The menu also features shakes and smoothies made with all natural ice cream and fat free frozen yogurt….

Check out the full QSR Magazine article HERE!

Photo courtesy of Epic Burger.