Chicago Real Estate News & Neighborhood Notes

I've been selling Chicago real estate for 25 years, and our team has sold or rented dozens of residences at Tribune Tower. So when I heard that Lululemon signed a lease for roughly 12,000 square feet at the base of the tower, my reaction was simple: this is the news the building has been waiting for.

It's great news for current owners, and it's great news for the sales team working to sell the building's remaining residences. A name as big as Lululemon draws attention, and attention is what the Trib needs right now.

What we know about the deal

The store will sit at the corner of Michigan Avenue and Illinois Street, on one of the busiest blocks of the Magnificent Mile, just north of the river. The retail portion of the building is owned by North American Real Estate, led by investor Savas Er, which bought it last year. Lululemon hasn't announced an opening date yet.

This is an addition, not a relocation. Lululemon already runs six other stores in Chicago, including locations on Rush Street and at 900 North Michigan Shops. The company recently told investors it is taking a "very measured" approach to new stores this year. When a brand that selective picks Tribune Tower, it says something about where this block is headed.

Lululemon joins a growing lineup at the building, including Fare, the fast-casual spot facing the plaza, and A. Lange & Söhne, the German watchmaker that opened its first Midwest boutique here.

Why this matters for "Liv @ the Trib"

I like to call living here "Liv @ the Trib," and this lease is going to change the building's profile. A flagship name at street level turns the tower into a destination. It brings in the kind of people who are shopping for a $3 million pied-à-terre, or for the place they'll call home.

I expect a real increase in traffic and sales. Foot traffic brings visibility, and visibility brings buyers who may never have walked past the building before. For owners, it's another reason the Trib stands out from every other luxury building downtown.

There's more on the horizon, too. The second phase of the Tribune development, the high-rise planned for the site just east of the tower, has been on the back burner for some time. From what I understand, it hasn't been shelved.

The Mag Mile is coming back, and I'm not the only one saying it

I spend a lot of time with developers, retail brokers and residential brokers, and right now we're all feeling the same thing: the Magnificent Mile is coming back.

The numbers back that up. Vacancy along the corridor peaked at about 33% in 2023. The latest reporting puts it around 26%, and brokers expect it to keep falling. Foot traffic is climbing, and lower rents have brought national retailers back to the table.

Here's what's happening up and down the avenue:

• Uniqlo (600 N. Michigan) has returned with a new flagship after more than a decade away.
• American Eagle (600 N. Michigan) signed a 14,000+ sq ft, three-brand flagship, slated for summer 2027.
• The Cube (600 N. Michigan), a London-based gaming venue, is making its U.S. debut upstairs.
• Candy Hall of Fame Experience (830 N. Michigan) leased 60,000 sq ft, the avenue's largest retail lease in more than a decade.
• Leica (800 N. Michigan) opened its first Midwest store, across from the Water Tower.
• MANGO (664 N. Michigan) opened its first Chicago store.
• Hotel Chocolat and L'Agence have added more boutique options at the north end.
• The North Face is expected back in a new two-story space.

Office activity is picking up, too. Directly across the street at the Wrigley Building, more than 100,000 square feet has been leased, including a long-term renewal by Perkins&Will and a new 15-year lease by Oil-Dri.

The timing of Lululemon's lease is perfect. I expect it to give other retailers the confidence to plant their flags on the avenue.

What's missing: new homes on Michigan Avenue

Here's the part of the story that doesn't get told enough. Demand to live on and around Michigan Avenue is strong, and there's almost no new construction to meet it.

Think about who works and studies within walking distance: doctors, residents and staff at Northwestern Memorial Hospital, and students at Loyola's law school and Northwestern's downtown campus. Many of them have the means and would love to live in a new building on Michigan Avenue. Right now, there's nothing out there for them.

That's why our development team is actively looking for an office building to convert to residential. The demand is there. The inventory isn't, yet.

The bottom line

This is a big win for Tribune Tower Residences and for the Magnificent Mile. Twenty-five years in, I've learned to recognize a turning point, and this feels like one.

Thinking about buying or selling at the Trib? Our team knows this building inside and out and tracks every listing and sale. View Tribune Tower Residences for sale, or call me at (312) 280-9600. I'm happy to set up a private showing or talk about what your residence is worth today.