In 1944, Irv and "Billie" Hanig opened their first shoe store on the north side of Chicago. Over the next 19 years, additional stores opened in Chicago and New York, including the country's first Johnston and Murphy store in Chicago's Palmer House Hotel. In 1978 their son, Peter Hanig opened the company's flagship store in 4,000 s.f. of space at the Farwell Building at 660 N. Michigan Avenue, an historic landmark. Over the years Hanig’s was joined on Michigan Avenue by Chanel, Gucci, Armani, Cartier and others. Hanig’s corner location at Erie Street is considered one of the best locations on Chicago’s premier shopping street.

Despite its landmark status and after numerous public hearings, in 2007 the City of Chicago approved demolition of the vintage1927 building to make way for a two-building ultra luxury project, the Ritz-Carlton Residences. The City accommodated preservationists by allowing the developer to disassemble the façade and reassemble it on the garage structure of the project. Hanig’s Footwear was the last independent retailer left on the Magnificent Mile.

The family-owned business prospered at this location and the family desired to remain on Michigan Avenue with its high pedestrian traffic, close to its loyal customer base. They were faced with the very real possibility of leaving the Michigan Avenue area after 30 years if a suitable alternative location could not be identified.

Through a professional association with a senior level brokerage team at UGL Equis, Peter Hanig engaged the firm to identify and evaluate various ground-level relocation scenarios along Michigan Avenue, although his first preference was to remain nearest the old flagships store. The Team swung into action and conducted an aggressive market survey, canvassing the entire Magnificent Mile area for off-market spaces and underperforming retailers for buy-out or sublease opportunities.

Every CEO of the retail stores along the “Mag Mile” that UGL Equis’ team analyzed as underperforming was contacted with unsolicited buyout offers, but availabilities were few. Rents on the avenue reached $450 psf, a rate suitable for showcase stores where image is paramount and profitability is not a concern. The search then extended into secondary and tertiary locations. It was at that point when the Team took a closer look at a vacated storefront in the John Hancock Center, 200 feet off Michigan Avenue. The 2,200 s.f. retail space stood empty for over two years.

Although there was substantial concern over the lack of Michigan Avenue frontage, visibility and pedestrian traffic, the Hancock Center provided a balance of location and value for Hanig. From a cost-savings standpoint, the rental rate was a fraction of what Hanig had been paying at the Farwell Building. A long-term lease was signed with Golub & Company. The Team secured for Hanigs’ a significant tenant improvement (TI) allowance and rent abatement.

Hanig’s took occupancy and within months achieved the same revenue as they had at the former location in half the space and a fraction of the rent. They were now serving a serious clientele more likely to buy than the high traffic of browsers who entering their store in the Farwell Building. Understanding the nature of the client’s business and not just matching up space without a grasp of this unique retail business was key to achieving success for this client.

Relocation into an “off” Michigan Avenue “C-list” site with light pedestrian traffic that became a destination for serious shoppers.

Higher customer conversion rate for Hanig’s.

Dramatically lower occupancy expenses.

Free rent period and significant TI’s secured for client.

Indoor parking options for clients.

Substantially higher profitability than their previous flagship location.