Chicago landmark Water Tower Place is slated to get a $170 million overhaul, which is expected to shrink retail space and add offices, doctors and other retail space, a move that reflects a broader trend of reimagining shuttered, struggling malls as mixed-use urban properties with offerings that go beyond shopping.
City-based Pepper Construction is the general contractor for the project at 835 N. Michigan Ave, with Neumann Smith as the architect for the project, which is expected to begin in 2027 and be substantially complete in 2028.
The plan envisages reducing the retail trade, currently on eight levels, on the first three floors of the shopping centre. The upper floors would become space for offices, medical offices and other commercial uses. The entrance would also be rebuilt with high ceilings and natural light entering the structure.
The mall’s owner, MetLife Investment Management, said in a press release that “retail and dining options will be thoughtfully concentrated on the first three floors, creating a more cohesive environment for visitors to enjoy.”
The new arrangement will provide flexible suite sizes for emerging and established brands — small-scale spaces that are currently rare on Michigan Avenue and anchor spaces with street-level visibility and access, the company said.
“By addressing the shortage of right-sized retail space on the Magnificent Mile, the renovated Water Tower Place will open the door for new brands and concepts to establish a presence in one of the nation’s most visited commercial corridors,” MetLife Investment Management added.
“When you walk in, you’re going to see colors, you’re going to see stores and you’re going to see a lot of digital around and you’re going to be able to see who’s at Water Tower Place,” said David Stone, the property’s leasing agent.
North Michigan Avenue, which also suffered business vacancies due to the pandemic, is poised for a revival, Stone said. Water Tower Place “is essential to the recovery of Michigan Avenue,” he added.
One of the downtown’s previous anchors, Macy’s, closed its 170,000-square-foot store in 2021. Existing retailers will remain open while the redevelopment takes place.
