Redevelopment
Chicago's Water Tower Place Slated for $170M Makeover
City-based Pepper Construction is general contractor for the project slated to begin in 2027
A $170M redevelopment of Water Tower Place in Chicago, including revamping the first-floor entry with an atrium featuring high ceilings and natural light, is slated to begin in 2027.
Chicago shopping landmark Water Tower Place is slated to receive a $170-million overhaul, which is planned to reduce retail space and add office, medical and other commercial spaces—a move reflecting a wider trend of reimagining struggling enclosed malls as urban mixed-use properties with offerings that go beyond shopping.
City-based Pepper Construction is general contractor for the project at 835 N. Michigan Ave, with Neumann Smith as architect. Work is expected to kick off in 2027 and be substantially complete by 2028.
The plan calls for reducing retail, currently on eight levels, to the first three floors of the shopping center. The upper floors would become space for offices, medical practices and other commercial uses. The entrance would also be rebuilt with high ceilings and natural light flowing into the structure.
The mall’s owner, MetLife Investment Management, said in a press release that the “retail and dining options will be thoughtfully concentrated across the first three floors, creating a more cohesive environment for visitors to enjoy.”
The new layout 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 refreshed Water Tower Place will open the door for new brands and concepts to establish a presence in one of the country’s most visited shopping corridors,” MetLife Investment Management added.
“When you walk in you’ll see colors, you’ll see stores and you’ll see a lot of digital around and you’ll be able to see who’s in Water Tower Place,” said David Stone, leasing agent for the property.
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 Michigan Avenue’s recovery,” he added.
One of the center’s previous anchors, Macy’s, closed its 170,000-sq-ft store in 2021. Existing retailers will remain open while the redevelopment takes place.
