Chicago’s Water Tower Place Announces Major Redevelopment to Modernize Iconic Mag Mile Destination
CHICAGO, April 27, 2026 (GLOBE NEWSWIRE) -- Water Tower Place, the seminal shopping destination on Chicago’s Magnificent Mile, today shared redevelopment plans for the popular and historic shopping center. Announced as the center celebrates its 50th anniversary, the redevelopment will update the retail, tourism and dining destination, transforming the center with soaring ceilings and abundant natural light. The project cost is expected to exceed $170 million, reflecting long-term confidence in the property and the continued strength of in-person retail on the Magnificent Mile.
In the reimagined Water Tower Place, shoppers entering from Michigan Avenue on the ground floor will immediately encounter retailers in a dramatic atrium with a ground floor pedestrian arcade. Beyond the entrance, updates to vertical circulation, sightlines and wayfinding will enhance the visitor experience via a transformational reinterpretation of the interior design aesthetic.
Retailers will be brought together onto the first three floors, creating a more intuitive experience for shoppers designed to increase foot traffic and store performance. At the same time, floors 4-8 will be separated from the retail center for other uses, including office and medical office space.
“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.”
Demand is up, Michigan Avenue is back
A national return to in-person shopping is fueling a resurgence of retail demand on the Mag Mile. Demand is highest for smaller-scale retail spaces, which are very rare on Michigan Avenue today; the lack of small shop space has limited numerous emerging retail brand concepts from locating onto the Mag Mile over the past few years, sending them to smaller streets with less foot traffic than Michigan Avenue. The Water Tower Place redevelopment will fill the gap for smaller to medium spaces, ensuring prominent brands can establish a presence on the Mag Mile at a scale that makes sense for their store designs and current strategies. The offerings will be flexible, accommodating retailers with needs ranging from small stores to prominent anchor spaces with street-level visibility.
This redevelopment underscores investor confidence in the property, the Magnificent Mile and the continued resurgence of in-person retail.
“We are pleased to usher Water Tower Place into its next 50 years, and to contribute thoughtfully to the ongoing revival of Chicago’s Magnificent Mile, one of America’s most celebrated shopping corridors,” said Matt Sharples, Regional Managing Director at MetLife Investment Management, which owns the property. “So many people have cherished memories of their visits to Water Tower Place over the last half century; this redevelopment is designed to ensure that we continue to offer a must-visit destination for future generations. While we are still in the design phase, as envisioned this investment will fund significant improvements, reinforcing Water Tower Place as a high-traffic, flagship retail, dining and entertainment destination on the most visited shopping street in Chicago.”
Water Tower Place Redevelopment: A Timeline
Work on the redevelopment has already begun and is currently in the design and planning phase. Early-stage renderings are available and demonstrate the strategic vision, the reimagined Michigan Avenue entrance and increased natural light throughout the interior.
Construction is expected to begin in 2027 and substantially wrap in 2028. Current plans phase construction so existing tenants can remain open to customers throughout the process. The updated center will offer retailers right-sized spaces with access to high-volume, cost effective locations on the Mag Mile.
Guided by an experienced redevelopment team, key players include retail architectural studio Neumann/Smith and general contractor Pepper Construction. This collaborative effort and major investment reflect a shared commitment to honoring the legacy of the center while creating a modern, experiential retail destination attractive to a new generation of shoppers, diners and visitors.
We will share additional details as the project progresses through the planning phase and crosses important milestones. To learn more about the redevelopment, visit: http://shopwatertower.com/redevelopment
About Water Tower Place
Water Tower Place is a Chicago landmark on the Magnificent Mile, renowned for its vast selection of over 70 stores including American Girl Place, LEGO, Adidas, and many more. Beyond shopping, the eight-story center also hosts several entertainment options, including the 550 seat live theater venue Broadway in Chicago and the Chicago Sports Museum. Explore our directory for a complete list of stores, dining choices, and more unique offerings at: www.shopwatertower.com.
Media Contact:
Caroline Thompson, Vice President, Akrete
caroline.thompson@akrete.com
(847) 440-4831
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