The availability of anchor retail space in Chicago is at a record high, according to a recent report from CBRE.
This available space comes at a time when much of the new product hitting the market is Class-A quality. This has attracted users at a faster rate and driven rental rates up as active retailers compete for prime market space.
Nearly 10.8 million square feet of retail anchor space is up for grabs now, which is well above the previous high of 10 million square feet in 2009, CBRE said. The total number of spaces available is at 218 up from 165 at this time last year.
The main reason for the increased availability has been the wave of bankruptcies and liquidations from retailers like Sports Authority and HH Greg, according to CBRE.
“Over the past year, we have seen dozens of big box anchor spaces become available en masse as retailers have left the market entirely,” said Joe Parrott, CRX, CLS, senior vice president with CBRE.
The exit of Sports Authority alone added 1.3 million square feet to the market, according to CBRE Research’s Q3 retail report. The average market time for space leased over the past year dropped to 25 months compared to 39 months the previous year, the report said.
CBRE also found that furniture and fashion stores account for nearly 50 percent of new anchor space leasing. More anchor space is being added as well, 3.8 million square feet was added over the past year which is up 1.6 million square feet.
The report from CBRE tracks stores larger than 20,000 square feet in the 45 largest regional shopping areas in Chicago. Find the full report here.
