Water Tower Place announces redevelopment plan with fewer retail floors
A $170 million-plus plan announced this week will redevelop the Water Tower Place mall on the Magnificent Mile.
The redesigned mall will feature new soaring ceilings and natural light, but fewer than half as many levels of retail.
As the mall at 835 N. Michigan Ave. just celebrated its 50th anniversary, the reimagining is intended to "modernize" the mall, while "honoring its enduring legacy as the United States' first vertical shopping center."
Retailers will be clustered on the first three floors, while floors four through eight will be set aside for other uses such as medical and dental offices, according to principals. Currently, there are eight levels of retail at Water Tower Place.
The retail spaces at the new Water Tower Place will include flexible suite sizes for both new and old brands, smaller-scale spaces that are not common on Michigan Avenue, and prominent anchor store spaces with street-level access, the mall said.
Mall principals also emphasized plans for a "dramatic atrium with a ground-floor pedestrian arcade," and other changes to the interior layout.
A rendering also shows the main escalators separated by a central corridor, rather than the current setup with two upward escalators separated by a cascading fountain.
"Throughout the center, updates to vertical circulation, sightlines, and wayfinding will create a seamless, intuitive journey, bringing new energy to every visit," Water Tower Place said.
Water Tower Place said next year, it plans to begin a phased construction plan under which retailers can remain open during construction.
The plan is set to be substantially complete by 2028.
Water Tower Place opened Oct. 20, 1975, with eight levels of retail as it has today and a 74-story skyscraper. It notably included a Marshall Field's store that became a Macy's along with the rest of the retail chain in 2006.
In January 2021, the Macy's at Water Tower Place announced it was closing. There was talk of a Target store moving in to take over the Macy's space — a proposal that Cook County Treasurer Maria Pappas called "disgusting and embarrassing" — but no Target ever moved in.
Water Tower Place also remains home to the Broadway Playhouse — formerly the Drury Lane Theatre. The building has also hosted pop-up events such as a "Harry Potter: Magic at Play" experience in 2023, and a Lego village during the holiday season in 2025.