Chicago’s Michigan Avenue close to landing a Nordstrom Rack.
Posted by ChicagoismynewBlog! on January 13, 2010
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….