Apple planning new flagship store in Chicago, could be 'transformational' for riverfront retail

Apple is reportedly set to move its store on Chicago's famous Michigan Avenue down the street into a new riverfront location, with a "mostly below ground" design that will mimic that of its iconic Fifth Avenue location in New York.

The new store will be built at 401 N. Michigan Avenue, according to the Crain's Chicago Business, about a half mile from Apple's existing outlet. It will sit underneath a 35-story skyscraper on the riverfront, extending into a basement that was previously used as a food court.

Apple will likely construct a large glass entryway —  similar to those used at the Fifth Avenue and Shanghai Pudong stores —  in Pioneer Court, a public plaza adjoining the building. Many in the Chicago real estate community believe that Apple's move will help accelerate the pace of redevelopment in the neighborhood.

"We think it's a very important milestone and a transformational event in terms of validating Michigan Avenue, all the way to Millennium Park and beyond, as a solid retail destination," Chicago-based hotel developer John Rutledge told the publication. "It will be a validator for a lot of other retailers."

Apple is considered a shrewd evaluator of retail real estate, and some estimate that an Apple Store can add as much as 15 percent to a shopping center's bottom line.

"If Apple goes somewhere, it raises the rent expectations in adjacent retail locations," retail industry analyst D.J. Busch added. "I think of Apple along the same lines as Nordstrom, because they're very good site selectors. When you see retailers that are good at selecting their next sites, that's a good indicator of how that area is evolving."