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Mag Mile Raises Rates, Keeps Vacancies Low

CHICAGO-As the rest of the property markets struggle following the recession, Michigan Avenue retailers raised rents by more than 50% this year and vacancy levels remained at less than 4%.

By Robert Carr | Updated on June 23, 2011

CHICAGO-Michigan Avenue saw retail rents shoot up in the first quarter by more than 50% from Q1 2010 and vacancies remain extremely low at about 3.7%. The Magnificent Mile continues to benefit from the current trend of luxury properties enjoying increased sales, despite market fundamentals still resting below average, according to a recent report by CB Richard Ellis.

The North Michigan Avenue Retail Vacancy Survey claims that rents for the roughly three million square feet rose to $127.42 per square foot, up 53% from last year’s average asking rate of $83.26, and much higher than the rest of downtown Chicago. Average asking rates in the downtown are about $20 per square foot, and even lower, about $16 per square foot, when including the suburbs, with a total vacancy rate of about 9.9% throughout Chicagoland.

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