It is now getting a multimillion-dollar makeover and is part of what some say is a Magnificent Mile comeback.
Spring has sprung in more ways than one on Michigan Avenue. More leases have been signed to fill out empty storefronts, but the biggest sign of recovery is a $170 million facelift for Water Tower Place.
"The new owner, Met Life, is making a huge investment in the shopping center and a huge bet on Michigan Avenue," said Stone Real Estate President David Stone.
Stone is the leading leasing agent for Water Tower Place. He says the makeover in the 813,000-square-foot mall will include removing the center escalators in the lobby.
"The ground floor becomes a main retail thoroughfare, stores on each side. It will go all the way back to The Ritz Carleton, and when you walk in, you see what is upstairs," Stone said.
Stones says the plan calls for retail only on the first three floors. Office, medical or quasi retail will fill floors four through eight. Gone will be Water Tower's infamous glass elevator. The stores will be smaller and likely leased to mostly women's apparel.
"We also have a lot of digital, a lot of color a lot of music a lot of things to make it an interesting thing to come and visit," Stone said.
Stone hopes the Water Tower refresh will spur more retail along Michigan Avenue. Since the COVID-19 pandemic, the Magnificent Mile has been slow to recover. But over the past year, leases have picked up.
"We have the opening of UNIQLO. We, of course, just have had a number of announcements the candy Hall of Fame, which is a 60,000 square foot, 20-year lease," said Magnificent Mile Association President and CEO Kimberly Bares.
Bares says the city has already welcomed more than 7 million visitors to Michigan Avenue this year. She says people are looking for experiential retail.
"They don't necessarily want just a product. They want to have a story. They want to have a feeling that goes with that product. That's why the Harry Potter store is doing so fabulously," Bares said.
Construction at Water Tower Place is set to begin a year from now. The mall will stay open throughout. The reopening of the new Water Tower Place is expected sometime in 2028.