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Water Tower Place is an iconic vertical mixed-use development at 845 N. Michigan Avenue on Chicago's Magnificent Mile, originally spanning approximately 758,000 square feet with retail, the Ritz-Carlton hotel, and condominiums. As of early 2026, the property maintains over 70 stores with a tenant mix focused on mid-tier fashion (40% of space), experiential retail including anchors American Girl Place and LEGO Store (20%), and casual dining (15%).
Occupancy stands at 65-70%, below the national average, amid Mag Mile retail vacancy of 22.9% and internal rates exceeding 30% following departures like Macy's in 2021. Average annual footfall reaches 3.1 million visitors, supported by proximity to CTA Red Line and high tourism. Base rents range $50-90 PSF with overage provisions and available concessions. The affluent catchment features $150,000 average household income and over 120,000 residents within one mile.
A $170 million redevelopment announced in 2026 will consolidate retail to the lower three floors starting 2027, repurposing upper levels for offices and medical uses while addressing aging infrastructure. Strengths include prime location and tourist draw; challenges encompass elevated vacancies, competition from nearby properties like 900 N. Michigan, and e-commerce pressure on apparel categories.
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Hours of Operation
Hours
| Monday | 11:00 AM — 07:00 PM |
| Tuesday | 11:00 AM — 07:00 PM |
| Wednesday | 11:00 AM — 07:00 PM |
| Thursday | 11:00 AM — 07:00 PM |
| Friday | 11:00 AM — 08:00 PM |
| Saturday | 11:00 AM — 08:00 PM |
| Sunday | 12:00 PM — 06:00 PM |
Hours may vary on public holidays. Check with individual stores for specific holiday schedules.
Insights
Demographic and Market Position
The property draws from Chicago's wealthiest neighborhoods with $150,000 average annual income within one mile and population exceeding 120,000. It benefits from 3.1 million annual visitors as a top tourist destination on the Magnificent Mile, though overall area retail vacancy reached 22.9% in late 2025. This supports mid-tier and experiential concepts but highlights saturation in traditional fashion amid post-pandemic recovery and e-commerce shifts.
Competition and Operational Challenges
Water Tower Place faces direct competition from thriving nearby assets like 900 N. Michigan Shops with 97% occupancy. Internal vacancies above 30% stem from anchor losses and tenant exits including Gap and Sephora. Aging vertical infrastructure and planned consolidation of retail to three floors by 2028 introduce uncertainty, though footfall has recovered near pre-2020 levels with improved security metrics.
Lease Terms and Accessibility Factors
Base rents of $50-90 PSF plus 5-7% overage allow flexibility with concessions such as free rent periods and up to $50 PSF tenant improvements due to vacancies. Direct CTA Red Line access 0.2 miles away and 18-mile proximity to O'Hare enhance reach for tourists and locals. However, ongoing redevelopment may disrupt operations through 2028 with reduced retail footprint.
Building Details
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Chicago, IL
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Interested in this property?
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City Snapshot
Chicago, IL
Comprehensive market intelligence for retail expansion in this city
