Mid-America Real Estate Report Shows Retail Development at All-Time-Low in 2018
Grocery stores still active in the market, experiential concepts trending.
The 2019 Shopping Center Report is available here.
CHICAGO (April 4, 2019) – 2018 saw a new all-time low in ground up retail development in Chicagoland according to an annual survey by Chicago-based Mid-America Real Estate Corporation.
The Mid-America Shopping Center Report, released this month, shows the delivery of gross leasable area (GLA) for new Chicagoland shopping centers totaled 870,600 square feet in 2018, which is a new record low down from 2017’s roughly one million square feet.
Despite the decline, grocery store development remained active as Whole Foods, Mariano’s, and Woodman’s each opened a new store in Chicagoland in 2018.
Target Express continues its growth in the city and urban areas, often providing the highly desirable first floor retail use so coveted by mixed use developers.
The demand for retail development within the city of Chicago remains strong but barriers to entry result in very little supply of big box or junior box availability.
“Smart retailers are carefully reviewing their store size and location networks to make sure they are making the best decisions for future growth and sustainability,” said Mid-America Real Estate Corporation Principal Andy Bulson.
Shopping center operators look to recraft the retail experience for customers offering entertainment, medical and fitness concepts in traditional neighborhood brick and mortar builds.
Retailers continue to push the omni-channel approach offering shoppers access to online ordering and in store pickup at their local brick and mortar location.
“Now more than ever, tapping into the expertise of local brokers with knowledge and expertise is critical to retailers and property owners alike who want to make informed decisions to optimize results,” said Bulson.
Mid-America Real Estate Corporation is a member of Mid-America Real Estate Group, a ChainLinks affiliate headquartered in Chicago, Ill. The company is the Midwest’s leading full-service retail real estate organization with offices in Oakbrook Terrace IL, Chicago, Milwaukee, Minneapolis and Detroit. For more information, call (630) 954-7300 or visit www.midamericagrp.com.
Mid-America Real Estate: www.midamericagrp.com