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prominent real estate developer has significantly altered its plans in Skokie, shifting from a large residential project to a retail development. Scott Gidwitz, son of business executive Ron Gidwitz, has scrapped plans for a nearly 500-unit apartment complex due to high borrowing costs and economic pressures. Instead, he will build a two-building retail project on a 6.2-acre tract at 5440 Touhy Avenue, featuring Chase bank, Cava Mediterranean restaurant, and First Watch breakfast chain.

    The retail development is seen as more feasible, with Gidwitz citing changing market conditions. The previous plan, approved in 2021, included 494 apartments, a cannabis dispensary, and 1,000 parking spaces. The new project will feature drive-thrus for Chase Bank and Cava, marking the first Illinois location to offer such service.

    The Chicago retail market is strong, with a vacancy rate at a 30-year low of 4.7 percent in the third quarter. Approximately 1.9 million square feet of retail space was absorbed in the year ending October 1, indicating high demand. With only about 830,000 square feet in development and 80 percent pre-leased, the market is expected to remain balanced through next year.