Available Class-A Retail Anchor Space Driving Rents
The struggles of retailers have flooded the Chicago market with anchor space. The size and scope of availability has not been seen in years, according to a new report from CBRE. The bankruptcies and liquidations of big-box retailers like Sports Authority, HH Gregg and others have resulted in 10.8M SF of available retail anchor space in the Chicago market, the highest number since 2009, when 10M SF was available.
Sports Authority's closures alone added 1.3M SF to the market. The number of total spaces available rose from 165 at this point last year to 218 this year. And much of that space is Class-A retail in desirable markets, creating the unique effect of replacement retailers leasing these spaces at a faster rate and pushing up rents.
Average rents in these anchor spaces rose to $12.05/SF, compared to $10.96/SF last year. The retailers leading the charge for this space are furniture and fashion stores, which account for more than half of new leasing activity.
