Currently, only 219,259 sf of specialty store space is being offered for lease, down 20.6% from last year's 276,148 sf. The overall vacancy rate, including department stores, fell to 7.3% from 9% last year. The survey includes retail space on State Street and Wabash Avenue from Wacker Drive on the north to Congress Parkway on the south, excluding bank buildings. Included are single- and multi-tenant buildings, with ground floor space, as well as upper- and/or lower-level retail space with direct escalator service between levels.

As underutilized buildings continue to interest developers and are taken out of service for redevelopment, the total supply of retail space fluctuates from year to year, the survey notes. This fall, there was a drop in the total inventory of specialty store space, which excludes department stores, from 1,121,531 sf a year ago to a current 1,048,678 sf.

"A lot of the fundamentals are strong," Michael Shields, EVP of Northern Realty Group, tells GlobeSt.Retail. "There's an expanding population Downtown, and there's a recent history of success among retailers on the street. That's going to attract other retailers. It's no secret, for example, the Urban Outfitters and Ann Taylor Loft are looking hard at State Street."