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Chicago’s original vertical mall is getting a full-blown glow-up.
Water Tower Place, the longtime Magnificent Mile shopping landmark that opened in 1975, is officially headed for a massive $170 million redevelopment that hopes to turn the aging mall into something brighter, sleeker and far more in tune with how people actually shop now.
The overhaul, announced this week by owner MetLife Investment Management, will dramatically reshape the eight-story complex at the corner of Michigan Avenue and Pearson Street. In fact, the biggest visual change might even make some long-time shoppers sad: those iconic escalators that whisk shoppers upward from the entrance are apparently on their way out.
Instead, the redesigned space will be home to a giant atrium filled with natural light, soaring ceilings and a more open ground-floor layout meant to make the whole place feel less confusing and more inviting. New renderings released by architecture firm Neumann/Smith show a glassier, airier interior with updated sightlines, digital displays and street-level storefronts.
Under the new plan, retail will be consolidated onto the first three floors, while floors four through eight will be repositioned for office, medical office and other commercial uses. The redesign is also expected to carve out smaller retail spaces—something that’s become surprisingly scarce along Michigan Avenue—as brands increasingly favor compact flagship concepts over sprawling department-store footprints.
“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,” David Stone, founder and principal at Stone Real Estate and lead retail leasing agent for Water Tower Place, said in the official announcement. “We will deliver new opportunities for retailers, offering flexible suite sizes.”
Water Tower Place struggled heavily during and after the pandemic, especially following the 2021 closure of Macy’s, its longtime anchor tenant. Vacancy along Michigan Avenue climbed as high as 33% in 2023. But recently, the corridor has started clawing its way back, with new arrivals including Uniqlo, the Harry Potter Shop Chicago and a massive Candy Hall of Fame attraction planned nearby.
“I think Water Tower is essential to Michigan Avenue’s full recovery,” Stone told NBC Chicago. “I think we’re the last piece of the puzzle.”
Construction is expected to begin in 2027 and wrap in 2028, with work happening in phases so existing tenants—including American Girl, Adidas and the Chicago Sports Museum—can stay open during the transformation.
For anyone who remembers spending an entire afternoon wandering those escalators with a shopping bag in one hand and a giant cookie in the other, the next era of Water Tower Place is about to look very different.