Water Tower Place in Chicago is set for a major transformation. MetLife Investment Management announced a $170 million redevelopment plan for the mall. The project aims to address rising retail vacancy and boost foot traffic at the property.
Water Tower Place Planning $170 Million Renovation
On April 27, 2026, Water Tower Place announced a $170 million redevelopment plan. The renovation is expected to coincide with the mall’s 50th anniversary. The mall will remain open during the time of construction and is the largest construction project on North Michigan Avenue in a decade.
MetLife Investment Management took control of the property in 2022 after the mall underwent financial struggles and Macy’s closure. The redevelopment plan is now underway, with construction set to begin in 2027. The renovation will be completed in 2028 and will introduce new retail stores and features.
Renovation Details
During the renovation, retail space will be concentrated on floors 1 through 3. It will feature flexible, small-to-medium-sized suite options. The spaces will target women’s apparel, beauty brands, and experiential retail tenants.
Floors 4 through 8 will be converted into office and medical space, expanding the building’s revenue streams. The project will add a new atrium with high ceilings and natural light and redesign the Michigan Avenue entrance. The layout will change to improve navigation and visibility.
The renovation aims to fill about 10 vacant storefronts with a focus on smaller, flexible retail spaces. Architects Neumann/Smith and general contractor Pepper Construction will lead the design and build.
Impact of the Transformation
Since the pandemic, Water Tower Place has struggled. With Macy’s closing and vacancy rising to around 30%, the mall turned half-empty and saw a decrease in foot traffic. The changes are expected to reshape the property’s retail and office mix.
The renovation plan aims to make the mall feel busier, modern, and easier to navigate. The goal is to attract new retailers and visitors. At the same time, with the surrounding Magnificent Mile neighborhood recovering, new brands will continue to open. It has witnessed increased foot traffic, surpassing pre-pandemic levels.
The redevelopment will reposition Water Tower Place as a modern mixed-use destination. The project reflects broader retail trends and aligns with ongoing recovery efforts along the Magnificent Mile.
