Old Navy Returns to the Chicago Loop
The retailer is opening a new 13,000-square-foot store at 20 South State Street to serve shoppers in the downtown area.
Updated on Oct. 16, 2026 in Commercial
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Old Navy is returning to the Chicago Loop, signing a lease for a 13,000-square-foot storefront at 20 South State Street. This move comes four years after the retailer closed its much larger 32,000-square-foot location on North State Street in 2022.
Why it matters
The new lease reflects a broader trend of retailers in Chicago's Loop and Mag Mile moving into smaller, more efficient footprints to navigate shifting foot traffic patterns. While retail vacancies remain high, these downsized stores signal a strategic recalibration for major brands in the city's commercial core.
The retailer is replacing a 32,000-square-foot footprint with a 13,000-square-foot space in the Loop. Current data shows the Loop retail vacancy rate dropped to 24.7 percent in 2025 from 26 percent the prior year.
The players
Old Navy
A national apparel retailer known for family-focused clothing that is currently rightsizing its Chicago physical retail footprint.
Nike
A global athletic footwear and apparel brand that is shifting its Chicago operations to a more compact retail environment.
ASB Real Estate Investments
The commercial property owner and manager responsible for the space at 20 South State Street.
The details
Old Navy is taking over the two-level space formerly occupied by Urban Outfitters. This transition to a smaller footprint mirrors the strategy used by other major brands, such as Nike, which recently leased a 43,000-square-foot space at 540 North Michigan Avenue while preparing to vacate its larger 57,000-square-foot store. Retailers are increasingly prioritizing compact, high-efficiency locations over the expansive storefronts that defined pre-pandemic real estate models.
Timeline
2022: Old Navy closed its previous store at 150 North State Street.
2023: Mag Mile retail vacancy reached 33.8 percent.
2024: Loop retail vacancy rate stood at 26 percent.
2025: Loop retail vacancy rate improved to 24.7 percent.
September 2026: Nike signed a lease for a new location at 540 North Michigan Avenue.
The Home Front
This development aligns with a broader trend of major brands downsizing their physical presence in major metropolitan cores. By opting for smaller, high-traffic footprints, retailers are adjusting to modern consumption patterns rather than maintaining the massive showrooms of the past.
Shoppers in the Loop should look for the return of this outlet-style store as commercial occupancy improves in the area. Keep an eye on your neighborhood retail corridors, as major brands continue to swap large, legacy spaces for smaller, high-efficiency footprints.
The takeaway
The return of national brands to the Loop suggests a stabilization in downtown retail vacancy as companies favor smaller, more efficient floor plans. Track upcoming openings in your area to see if your local commercial hubs are following this shift toward compact, agile storefronts.
Further reading
For more updates on how local storefronts are evolving, check our latest reporting on Commercial real estate in Chicago.
Source note: This article includes information reported by The Real Deal New York.
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