By Sam Bader, Horizon Construction Team LLC | 20+ years building retail, restaurant, and franchise projects across Chicagoland | Published September 30, 2026
Quick Answer
New retail space in Chicago is rare in 2026, and it is going to a short list of neighborhoods. Measured by the retail square footage in projects that are approved, permitted, or under construction, the leaders are the Near West Side around the United Center, Lincoln Park and Bucktown along the North Branch, and Fulton Market and the West Loop. Bronzeville, Logan Square, and the Gold Coast and Magnificent Mile follow. A third trend is spread across the city: grocery stores moving into empty drugstore and grocery boxes in Uptown, North Park, Jefferson Park, and West Pullman.
Most of this space is not stand-alone stores on empty land. It is ground-floor retail inside apartment towers, old buildings being rebuilt, and big vacant boxes being refilled. Below is each neighborhood, the projects behind it, and what it means if you plan to build or lease there.
There is no official count of new retail space by neighborhood. We ranked these areas using public project filings and news reports, and we list our sources at the end.
Why New Retail Space in Chicago Is So Rare in 2026
The Chicago area is building very little retail right now. About 1.6 million square feet of retail was under construction across the metro in the second quarter of 2026, according to CoStar data published by Matthews. That is a small slice of the total market. Only about 201,000 square feet was finished that quarter.
The space that does exist is filling up. Metro retail vacancy was about 4.9 percent in the second quarter. Average asking rent was 22.61 dollars per square foot, up 2.2 percent from a year earlier.
Most new building is happening in the suburbs, not the city. Matthews reports that Porter County and the Joliet and Central Will County area hold a large share of current retail construction, while city projects are more selective. Much of what is being built is pre-leased, build-to-suit, or small format.
Inside the city, CBRE’s 2026 outlook pointed to Southport, Armitage, the Gold Coast, and Fulton Market as places where almost nothing new is replacing space as it gets leased. CBRE expects tenants to look past the edges of those corridors for space. That is exactly where the projects below are going.
For the bigger picture on cost, tariffs, and schedule, see our earlier post, Chicago Retail Construction 2026: What Is Actually Getting Built. This post focuses on where the space is landing, neighborhood by neighborhood.
The 8 Chicago Neighborhoods Adding the Most Retail
We ranked these by the retail square footage in projects that are approved, permitted, or under construction as of September 2026. Big planned numbers count, but we also weigh how close each project is to real construction.
1. Near West Side: The 1901 Project at the United Center
No Chicago neighborhood has more retail in the pipeline. The 1901 Project plans about 670,000 square feet of retail on 55 acres of parking lots around the United Center. The full plan also includes about 9,500 homes, 1,300 hotel rooms, and 660,000 square feet of office, built over 10 to 15 years.
Construction started on June 3, 2026. The first phase is about 500 million dollars on roughly 12.3 acres south and west of the arena. It includes a 6,000-seat music hall, a hotel, and a parking garage wrapped in retail, with a spring 2028 target.
The city issued a full building permit the same day as the groundbreaking. It covers a three-story addition to the United Center with 266 parking spaces, 10 loading spaces, retail, and a rooftop people can use. The estimated cost is 50 million dollars. McHugh Construction is the general contractor.
What it means for builders: The first retail here is not a stand-alone store. It is a one-story brick base wrapped around a parking garage, with a public park on the roof. Retail tenants will build out inside a concrete structure made for cars, under a roof that carries soil and drainage. Plan your mechanical and plumbing routes early, because moving them later is hard.
2. Lincoln Park and Bucktown: Foundry Park and the Clybourn Corridor
This area has the most new retail on the North Side, spread over two very different projects.
Foundry Park. This is the 3 billion dollar project on the north half of the old Lincoln Yards site, along the Chicago River. The plan includes about 420,000 square feet of retail and commercial space, plus thousands of homes, office space, and a hotel. City Council approved it in February 2026. On September 23, 2026, City Council approved an agreement for more than 200 million dollars in public funding for roads, parks, and other infrastructure. The developer, JDL, plans to start the first phase before the end of 2026. That phase is four buildings on the triangle between Southport Avenue, Kingsbury Street, and Cortland Street.
Willow Street District at 1800 N. Clybourn. CRM Properties is replacing the mostly empty Clybourn Place shopping center with five new retail buildings totaling about 43,900 square feet. Spaces go up to about 9,500 square feet. Demolition started in May 2026. The developer dropped a planned apartment tower so it could build the retail under the site’s existing zoning without waiting for a rezoning. The site was once the Turtle Wax plant, built in 1908, and the plan keeps its historic masonry towers. The smaller south parcel gets a retail building and a 99-space parking lot. A completion date has not been announced.
2600 N. Clark. A five-story building with 48 apartments and ground-floor retail received its full building permit on the old Dunlay’s site.
What it means for builders: Willow Street District is a rare thing in the city: new, stand-alone retail buildings with their own parking. That means real site work, including drives, lighting, stormwater, and accessible routes. Our guide to retail site development covers what that involves. Foundry Park sits on a former steel mill site next to the river, so expect soil, water, and cleanup work before any storefront goes up.
3. Fulton Market and the West Loop
Fulton Market is adding retail one building at a time, mostly on the ground floors of new towers. Randolph Street rents were reported at 90 to 100 dollars per square foot in late 2025, so every new storefront matters. We covered why this area moves so fast in Fulton Market Is Booming: Why It’s Chicago’s Best Retail Construction Zone.
Here is what is new or coming:
- The Fulton, 217 N. Sangamon. This 11-story office building opened in early 2026. It has nearly 14,000 square feet of ground-floor retail, plus space leased to Gibsons Bar and Steakhouse and Equinox.
- Stead 220, 220 N. Ada. This 29-story apartment tower finished construction in March 2026. It has more than 12,300 square feet of ground-floor retail.
- 170 N. May. Trader Joe’s signed a lease for about 17,000 square feet in the base of a planned apartment tower. The podium has about 20,000 square feet of commercial space. The developer targeted a 2027 opening for the store.
- 900 W. Fulton Market. City Council approved this plan in January 2026. It rebuilds three buildings with nearly 10,000 square feet of street-front retail. No construction date has been announced.
- A long-vacant historic building. A proposal shown to neighbors in August 2026 would add 20 apartments and 3,350 square feet of ground-floor retail.
What it means for builders: Most of this space is delivered as a raw shell under a tower. The tenant then pays for the full build-out. For restaurants, that means venting a kitchen hood through a high-rise, fitting grease traps, and sharing loading docks. Our guide to restaurant construction in Chicago walks through budget and timing.
4. Bronzeville: A 70,000 Square Foot Grocery Anchor
Bronzeville has one of the biggest single retail buildings planned in the city. The Chicago Plan Commission unanimously approved a 70 million dollar project on August 20, 2026, at the former Stateway Gardens site near Pershing Road and State Street.
The first phase centers on a roughly 70,000 square foot Pete’s Fresh Market. That store would be larger than the nearby Mariano’s. Plans also include space for a local True Value hardware store, a restaurant or cafe, a medical office building, and a drive-thru bank. Apartments come in a later phase. The developer, McLaurin Development Partners, wants to start construction in early 2027.
What it means for builders: This is a large grocery build with heavy site work. The developer has been working on traffic studies and a possible widening of State Street. Road work and city approvals often set the schedule on a site like this more than the building does. See our post on commercial construction permits in Chicago and the suburbs.
5. Logan Square: Old Buildings and New Grocery
Logan Square is adding retail mainly by reusing what is already there.
- Hollander building, 2418-2428 N. Milwaukee. Construction started in spring 2026. The old moving and storage building is being rebuilt with a new five-story addition. It will have 62 loft apartments and ground-floor space for several retail tenants.
- 2240 N. Milwaukee. A six-story building with 50 apartments and ground-floor retail received its full building permit in May 2026.
- Trader Joe’s, 2053 N. Milwaukee. Trader Joe’s signed a lease for part of a former CVS that has been empty since 2017. The building is about 25,473 square feet on about 2.28 acres. About 12,000 more square feet is being marketed to other retailers. No opening date has been set.
The city also finished a rebuild of the Logan Square traffic circle and started a new public plaza on the old Megamall lot in July 2026. Better sidewalks and plazas tend to help storefront leasing nearby.
What it means for builders: Turning an old drugstore into a grocery store is a full rebuild inside. Expect new refrigeration, electrical service upgrades, new floors, and a new storefront. Our post on retail build-out vs ground-up construction explains how to compare the costs.
6. Gold Coast and the Magnificent Mile
The Gold Coast has very little new retail, but two projects stand out.
67 E. Oak. A five-story building is being replaced with a two-story, 5,960 square foot single-tenant store. The full permit was issued in August 2026, with completion targeted for September 2027. We broke down the cost of this project in our 2026 retail construction report.
Water Tower Place, 835 N. Michigan. MetLife Investment Management plans a 170 million dollar rebuild of the 50-year-old vertical mall. Retail will fill the first three floors, with a new atrium and a ground-floor walkway lined with shops. Spaces will range from about 1,000 to 7,000 square feet. The upper floors will shift to medical and office use. Pepper Construction is the general contractor. Work is set to start in 2027 and finish in 2028.
What it means for builders: Both projects replace old space with better space rather than adding a lot of new floor area. Work in this area means tight sites, no room to store materials, and neighbors who stay open the whole time. Our Chicago retail construction team plans deliveries and staging around that from day one.
7. Uptown, North Park, and Jefferson Park: Grocery Refills
The North and Northwest Sides are not getting big new buildings. They are getting grocery stores in empty boxes.
- Uptown. Trader Joe’s plans a store at 804 W. Montrose Ave., in a space that last held a plant-based grocery.
- North Park. The local alderperson said Trader Joe’s signed a lease in the Lincoln Village area and started permitting. The company has not confirmed it.
- Jefferson Park. Sprouts Farmers Market lists a Chicago store at Higgins and Foster among ten Chicago-area locations planned by the end of 2027. It would go into a former CVS.
Trader Joe’s had six Chicago stores as of spring 2026. The Logan Square, Uptown, North Park, and Fulton Market stores were all announced within about six months.
What it means for builders: Grocery refills are fast, high-value interior jobs. The landlord often has to upgrade the roof, storefront, parking lot, or electrical service before the tenant can start. If you own an empty box in these areas, a clear plan for those items helps you land the tenant. Our retail renovations team handles both sides of that work.
8. West Pullman: A Grocery for a Food Desert
West Pullman lost its Aldi at 821 W. 115th St. in 2024. In June 2026, the city awarded a 150,000 dollar grant to the Far South Community Development Corporation to bring a new grocery into the empty store. Living Fresh Market will run it, with an opening targeted for spring 2027.
What it means for builders: Small in size, but a sign of where city money is going. Neighborhood grants are helping fund store rehabs on the South and West Sides. That makes smaller refill projects possible where private money alone would not work.
What About the Suburbs?
The suburbs are building more new retail than the city. Land is easier to find there, and the math works better for developers.
A few examples from 2026:
- Orland Park. The village approved a roughly 229,000 square foot Amazon store at 9600 159th Street in January 2026. See our Orland Park retail construction page.
- Oak Brook. The village board approved a 225,000 square foot Amazon store on August 11, 2026, replacing seven mostly empty 1970s office buildings. We covered the rest of the area in Oak Brook’s Retail Reinvention.
- Naperville. Most new retail there is going into old shopping centers that are being torn down, split up, or refilled. Read Naperville Commercial Construction: Where the New Retail Is Going.
- Sprouts across the suburbs. Sprouts lists planned stores in Arlington Heights, Buffalo Grove, Orland Park, Wheaton, Woodridge, Oak Lawn, Broadview, and Bloomingdale, plus Munster, Indiana.
If your project is outside the city, our shopping plaza construction and strip mall construction teams work across the suburbs.
What This Means If You Plan to Build or Lease
The same few patterns show up in almost every neighborhood on this list. Here is what they mean for your project.
1. Most new space comes as a shell. Ground-floor space in a new tower is usually handed over with bare floors, bare walls, and utilities stubbed in. The tenant pays for everything after that. Before you sign, get a clear list of what the landlord delivers. Our commercial lease build-out checklist shows what to check.
2. Old buildings are where much of the work is. The Hollander building, 900 W. Fulton Market, and the Willow Street District all reuse old structures. Old buildings hide problems: weak floors, old wiring, and walls that do not match the drawings. Budget for surprises and open up walls early.
3. Empty boxes are getting a second life. Former CVS and Aldi stores are becoming grocery stores. These jobs look simple from the street but often need new electrical service, refrigeration, roofing, and storefronts.
4. Accessibility rules apply to every build. Any new store or major renovation must meet the federal ADA, the Illinois Accessibility Code, and the local code. See ADA requirements for retail and restaurant buildouts in Illinois.
5. Approvals set the schedule. Several projects on this list waited years for zoning, funding, or traffic approvals. The actual build is often the shorter part. If you run a chain, our franchise buildout timeline shows how the steps line up.
6. Look one block over. With so little space on top corridors, CBRE expects tenants to move just past them. A side street or a refilled box can cost less and open faster than waiting for space on the main strip.
Chicago Neighborhood Retail Projects at a Glance
New and planned retail by neighborhood, as of September 2026
| Rank | Neighborhood | Key projects | Retail space | Status |
|---|---|---|---|---|
| 1 | Near West Side | The 1901 Project | About 670,000 SF at full buildout | Phase one under construction, 2028 target |
| 2 | Lincoln Park and Bucktown | Foundry Park, Willow Street District, 2600 N. Clark | About 420,000 SF plus about 43,900 SF | Foundry Park start planned by end of 2026; Willow Street demolition underway |
| 3 | Fulton Market and West Loop | The Fulton, Stead 220, 170 N. May, 900 W. Fulton Market | Several 3,000 to 20,000 SF ground floors | Mix of finished, approved, and planned |
| 4 | Bronzeville | Pete’s Fresh Market at Pershing and State | About 70,000 SF grocery plus added retail | Plan Commission approved August 2026; start targeted early 2027 |
| 5 | Logan Square | Hollander building, 2240 N. Milwaukee, Trader Joe’s | Several storefronts plus a 25,473 SF former CVS | Under construction or permitted |
| 6 | Gold Coast and Mag Mile | 67 E. Oak, Water Tower Place | 5,960 SF store; three rebuilt retail floors | Oak St. permitted; Water Tower work 2027 to 2028 |
| 7 | Uptown, North Park, Jefferson Park | Trader Joe’s (2), Sprouts | Grocery refills of existing boxes | Leases signed or announced |
| 8 | West Pullman | Grocery at former Aldi, 821 W. 115th St. | One grocery refill | City grant June 2026; spring 2027 target |
Frequently Asked Questions
Which Chicago neighborhood has the most new retail space in 2026?
The Near West Side leads by a wide margin. The 1901 Project around the United Center plans about 670,000 square feet of retail over 10 to 15 years, and its first phase started construction on June 3, 2026. Lincoln Park and Bucktown come next, led by about 420,000 square feet of retail and commercial space planned at Foundry Park.
How much retail is under construction in the Chicago area?
About 1.6 million square feet of retail was under construction across the Chicago metro in the second quarter of 2026, according to CoStar data published by Matthews. Most of it is in the suburbs, and much of it is pre-leased, build-to-suit, or small format.
Why is there so little new retail space in Chicago?
High construction costs and tight financing keep most developers from building retail without a signed tenant. Metro retail vacancy was about 4.9 percent in the second quarter of 2026, so existing space keeps getting leased. CBRE noted that Southport, Armitage, the Gold Coast, and Fulton Market have had almost no new construction to replace space as it fills.
What kind of retail space is being built in Chicago neighborhoods?
Mostly ground-floor space inside new apartment and office towers, rebuilt older buildings, and empty stores being refilled. Grocery stores are a big part of it, with Trader Joe’s, Sprouts, and Pete’s Fresh Market all planning new Chicago stores. New stand-alone retail buildings, like the Willow Street District in Lincoln Park, are rare.
How long does a retail build-out take in Chicago?
It depends on the space. A restaurant build-out usually takes 5 to 9 months from signed lease to opening day, and most of that time is design and permitting. A new building takes longer: a small single-tenant store on Oak Street is scheduled for about 13 months of construction before the tenant build-out even begins.
Planning a Retail Build in One of These Neighborhoods?
Horizon Construction Team builds retail stores, restaurants, grocery refills, and shopping centers across Chicago and the suburbs. We handle shell build-outs in new towers, rebuilds of older buildings, and ground-up retail with its own parking. If you have signed a lease or are about to, now is the time to price your build-out and order long-lead items.
Call us at (773) 858-3214 or request a free quote. You can also see our full range of Chicago retail contractor services.
Sources
- Matthews: Chicago Retail Market Report Q2 2026 (CoStar data)
- CBRE: Chicago 2026 U.S. Real Estate Market Outlook
- Urbanize Chicago: 1901 Project groundbreaking
- Chicago Cityscape: The 1901 Project permits
- Chicago YIMBY: Foundry Park phase one details
- Block Club Chicago: City OKs 200M dollars for Foundry Park
- Chicago Sun-Times: Finance Committee backs Foundry Park subsidy
- Urbanize Chicago: 1800 N. Clybourn retail plan
- Chicago YIMBY: Work begins at 1800 N. Clybourn
- WBEZ: The Fulton opens in Fulton Market
- Hoodline: Stead 220 construction complete
- Urbanize Chicago: Trader Joe’s at 170 N. May
- Chicago YIMBY: 900 W. Fulton Market approved
- Block Club Chicago: Bronzeville grocery gets city approval
- Block Club Chicago: Hollander redevelopment construction begins
- Block Club Chicago: Trader Joe’s opening in Logan Square
- Chicago Sun-Times: Water Tower Place redevelopment
- Block Club Chicago: Trader Joe’s planning North Park store
- Sprouts: Upcoming Chicagoland locations
- Block Club Chicago: New grocery for former West Pullman Aldi
