Retail Vacancy on Chicago’s Magnificent Mile More Than Doubles from Pre-Pandemic Levels | Wolf Street

The Mag Mile has been plagued by increasing crime and a sharp decline in foot traffic caused by an increasing office vacancy rate. The number of crime complaints in Chicago was 8 percent higher in 2021 than 2020 and the number of crime complaints made during the first few months of this year already was 34 percent greater than all of 2021, according to Chicago Police Department data compiled by B of A Securities’ CMBS research team. So far this year, robbery, for instance, was up 10 percent from last year and thefts were up a staggering 61 percent.

Meanwhile, the area has seen a drop in office workers, which reduces foot traffic. Kastle Systems this week reported that Chicago’s actual office occupancy rate was only 34.6 percent. That’s up 1.1 percentage points from the previous week. And it compares with Chicago’s formal 20.3 percent vacancy rate for the fourth quarter, according to Cushman & Wakefield. That was up from 16.4 percent a year earlier.

Retail Vacancy on Chicago’s Magnificent Mile More Than Doubles from Pre-Pandemic Levels | Wolf Street