Chicago’s boutique retail corridors are thriving. Here’s why.
After a decade of vacancy ups and downs — including a pandemic that changed how people shop — Chicago’s neighborhood retail corridors are hitting their stride.
A new analysis from Stone Real Estate found that the shopping strips on Damen, Armitage and Southport avenues are thriving, with low vacancy rates and a vibrant mix of tenants. Those three areas, considered Chicago’s primary boutique retail corridors, are often go-to spots for brands looking to set up shop in the city. Their fates could influence Chicago’s ability to attract retailers.
Southport maintained its 0% vacancy rate between Addison and Roscoe streets between 2023 and 2024, according to the report. On Armitage between Sheffield Avenue and Halsted Street, the vacancy rate dropped to 4.3% from 6.4%. And on Damen, the vacancy rate between Willow Street and North Avenue plummeted to 12.9% from 23.9%.
“(Damen) was the one that was struggling,” said Will Winter, vice president of Stone Real Estate.“ In one year alone, the vacancy got nearly cut in half. All the streets, to varying degrees, are doing very well right now.”
A healthy retail corridor has the right mix of shops, restaurants and coffee spots to keep customers engaged throughout the day. The goal? Make shoppers linger.
The three streets that Stone analyzed appear to have found the right mix of tenants to achieve that objective, Winter said. They’re also located in neighborhoods that have seen household incomes rise over the past decade or so. Their proximity to public transit opens them up to shoppers from elsewhere in the city, too.
Armitage Avenue
On Armitage, intensified demand from national retailers has shifted “the negotiating leverage to the landlords, who are now able to drive rents on new deals to nearly double their pre-pandemic levels,” according to Stone’s report.
The street has long been a go-to spot for online brands, a fact that helped it weather COVID’s retail downturn. Retailers are drawn to the average household income in the surrounding Lincoln Park neighborhood, which has doubled in the last 15 years, according to the report.
The nearby restaurant scene is tantalizing, too. Mainstays include Cafe Ba-Ba-Reeba, Summer House Santa Monica and Boka. Newer spots nearby include Sushi-san, Ramen-san, Armitage Alehouse and Small Cheval.
New York-based Levain Bakery, which is known for its 6-ounce cookies, is taking over a spot previously occupied by clothing brand Marine Layer at 849 W. Armitage Ave. The store, set to open in November, will be Levain’s third Chicago location.
“They have local retail, which we really love surrounding ourselves with. You get a lot of foot traffic,” said Levain CEO John Maguire. “Then you get a little bit of tourism in Lincoln Park in the summer, because it’s such a great neighborhood.”
Acadia Realty Trust — Levain’s landlord and the largest landlord on the street — has lauded the bakery’s ability to make shoppers linger. They pop in for a cookie or coffee, fueling and therefore prolonging their shopping trip.
“Levain . . . will add a new (food and beverage) component to Armitage and drive a new layer of traffic that will benefit the entire street,” A.J. Levine, Acadia’s senior vice president of leasing and development, said during an earnings call in October.
Other new retailers on Armitage include Hotel Chocolat, which will replace Foxtrot; clothing brands Rails and Haggar; jewelry store Catbird; Wintrust Financial; swimwear brand Frankie’s Bikinis; and eyewear company Moscot.
The only long-term vacancy on the street has been the building at 816 W. Armitage Ave. that once housed Charlie Trotter’s storied restaurant. Trotter’s son, Dylan, plans to launch a dinner series out of the building next month, essentially filling that lone vacancy.
Southport Avenue
Southport maintained its 0% vacancy in 2024 while adding two retailers: jewelry store Gorjana, which replaced U.S. Apothecary at 3451 N. Southport Ave., and British activewear brand Sweaty Betty, which replaced Ink & Alloy at 3530 N. Southport Ave.
“It’s good to see some new blood on the street . . . so brands don’t get tired,” Winter said.
Fueling activity on Southport are longstanding restaurants such as Crosby’s Kitchen, D’Agostino’s and Coda di Volpe. Relative newcomers nearby include Sweetgreen and a trio of restaurants Boka opened in the old Southport Lanes space: GG’s Chicken Shop, Little Goat Diner and Itoko.
Damen Avenue
At just under 13% in 2024, Damen saw its best vacancy rate since it hit 11.6% in 2018.
The corridor had struggled, particularly since the COVID pandemic. The area first popped up as a hot shopping strip for edgy clothing brands because artists worked nearby.
The pandemic hit Damen hard. Its vacancy rate soared to nearly 30% in 2020, doubling the sub-10% rates the corridor enjoyed between 2013 and 2016. As it began to recover in 2022, a new identity started emerging. Service retailers like banks and veterinary clinics began replacing clothing stores. Families populate the neighborhood now more than working artists.
Incomes have risen, too. According to the report, household income in the area surrounding Damen Avenue is now 83% of the area surrounding Armitage and on par with Southport.
“As the incomes have risen, the vacancy has decreased,” Winter said.
That makeup of retailers has shifted, too. Soft-goods retailers — which includes apparel and bedding — outpaced service retailers for the first time since 2021, occupying 41% and 32% of space, respectively.
There are plenty of bakeries and restaurants to encourage lingering. Nearby Milwaukee Avenue has Sweetgreen, Cava and Mindy’s Bakery, and spots such as Big Star are just around the corner.
New tenants in the shopping corridor include resale boutique The Pop-Up, smoothie spot Playa Bowls, clothing store Saturdays Football, beauty shop Jones Road and bag store Baggu. Damen also got a boost last year when Barnes & Noble took over the former Walgreens space at 1601 N. Milwaukee Ave.
Damen is getting its footing, but it’s not on solid ground yet, Winter said.
“The challenge is: Can it keep taking steps in a positive direction?” he said. “It’s strong now. Can it build upon that?”
Ally Marotti is a senior reporter for Crain’s Chicago Business covering consumer products, food, restaurants and retail. She joined Crain’s in 2020 from the Chicago Tribune.