CHICAGO (WBBM Newsradio) – Water Tower Place, one of Chicago’s most recognizable shopping destinations, is set for a more than $170 million redevelopment aimed at modernizing the mall and boosting foot traffic along the Magnificent Mile.
Property owner MetLife Investment Management unveiled plans to overhaul the 50-year-old vertical mall at 845 N. Michigan Ave., reconfiguring its layout and updating its design to better match current shopping trends.
“Water Tower Place is woven into the fabric of Chicago’s cultural narrative as the retail pillar of the Mag Mile,” said David Stone, Founder and Principal at Stone Real Estate and lead retail leasing agent for Water Tower Place. “This historic investment is about filling a supply gap on Michigan Avenue while also preserving the legacy of America’s first and most heralded vertical shopping center. We will deliver new opportunities for retailers, offering flexible suite sizes, all within this iconic setting that continues to attract visitors from all over the country and the world.”
The project will concentrate retail and dining on the first three floors, creating a more streamlined experience for visitors. Plans include opening up the lower levels with higher ceilings, a new atrium entrance and improved sightlines. Restaurants are expected to be more visible, while smaller retail spaces will be added to attract a wider range of tenants.
A rendering of Water Tower Place's interior
Water Tower Place
Upper floors of the building could be repurposed for non-retail uses such as office or medical space, reflecting a broader shift in how large retail properties are being used.
The redevelopment comes as the Magnificent Mile continues to recover from pandemic-era challenges, including high vacancy rates and changing consumer habits. Leasing demand has recently increased, particularly for smaller storefronts, which developers say are in short supply along the corridor.
Water Tower Place, which opened in 1975 as one of the country’s first vertical malls, has seen several major tenants depart in recent years, including a large department store anchor and a food hall.
Construction is expected to begin in 2027 and continue in phases through 2028, allowing existing tenants to remain open during the work.
Developers say the investment signals long-term confidence in both the property and North Michigan Avenue as a key retail and tourism destination.
