How the Western Suburbs Are Changing: Retail & Community Developments to Watch in 2026

The western suburbs of Chicago are evolving rapidly. As we head into 2026, a number of real estate trends, downtown revitalizations, and commercial developments are reshaping the region — making it an increasingly attractive place to live, work, and invest. Here’s a look at the key shifts to watch.

1. Block 59 in Naperville: Dining + Gathering Destination

(As described previously — recap and key highlights)

• Block 59 is a major redevelopment of the former Heritage Square (at Route 59 and Aurora Avenue) into a vibrant restaurant + entertainment district, led by Brixmor.

• The plan includes ~82,500 sq ft of restaurant/entertainment space, with a mix of upscale (Ruth’s Chris), popular chains (Shake Shack), and more niche dining (FreshFin Poké, Velvet Taco, etc.). 

• A central outdoor plaza is a key design feature — not just a walkway, but a community space: event programming, gathering, and even a seasonal ice rink in winter.

• To support infrastructure, Naperville established a special business district with an additional 1% sales tax in the area. 

• This development signals a move away from traditional strip-mall retail toward “experience-first” places where people come to linger, socialize, and enjoy.

2. Hines Development at 1200 Diehl Road

A second very significant project that’s reshaping Naperville’s retail + community landscape is being developed by Hines at 1200 Diehl Road — and it's more than just housing.

Project Overview

• Hines recently broke ground on a five-story mixed-use development featuring 306 residential units plus 15,000 square feet of ground-floor retail. 

• The homes will include a mix of studios, 1-bedroom, 2-bedroom, and 3-bedroom units.

• Parking: about 652 parking spaces are planned for the development. 

Amenities & Design

• The development includes a south-facing pool deck (with cabanas and chaises), a co-working lounge, a hospitality-style lobby, and a club room with a fireplace and TV wall.

• Other amenities: golf simulator, fitness center (with outdoor connectivity), and a strong tech-enabled feel (smart thermostats, apartment entry systems). 

• A walking path will connect the building to a nearby detention meadow, which will be upgraded with paved walking paths and benches — creating a natural, green amenity for residents. 

• According to Hines, the project is one of their “private placement” developments funded in part by their U.S. Direct Investments program. 

Retail & Community Impact

• The 15,000 sq ft of retail gives this project meaningful commercial presence. Retail tenants are not yet fully announced, but this space will likely attract restaurant, lifestyle, or service-oriented brands.

• The location is strategic — the site is adjacent to Freedom Commons, a 160,000 sq ft shopping center. 

• This kind of mixed-use development aligns with Naperville’s long-term master plan for active “city corridors” that blend residential, retail, and public space. 

• The project is being marketed as LEED-certified, emphasizing sustainability in design. 

Financing & Timeline

• Hines secured a $66.1 million construction loan for the project. 

• The development marks a major redevelopment of a formerly vacant or underused office site (previously used by DeVry University). 

• Given the scale and mixed-use nature, this project is likely to become a key community hub, not just for residents, but for the broader area.

3. Big Mall Redevelopment: From Malls to Mixed-Use Destinations

Stratford Square Mall → “The Grove”

• One of the biggest transformations is happening in Bloomingdale, where Stratford Square Mall is being reimagined as “The Grove” — a mixed-use development featuring retail, residential, and communal green space. 

• The mall’s demolition (already underway) clears the way for a more modern, walkable district rather than a traditional enclosed mall.

• This redevelopment reflects a broader trend: malls in suburban markets are shifting to mixed-use formats that combine shopping, homes, and community gathering spaces. 

• Once completed, “The Grove” could become a new retail and social hub — not just for Bloomingdale, but as a destination for nearby suburbs.

 Why These Projects Matter for the Western Suburbs

• Retail Revitalization: All of these developments turn older, less active parcels into modern, walkable hubs with a mix of uses — reflecting changing suburban retail demand.

• Community Gathering: Not just shopping — these places are built for people to hang out, connect, work, and "do life" together. Plazas, paths, co-working lounges, and other shared spaces emphasize public life.

• Infill Development: Rather than expanding outwards, these areas are densifying existing commercial corridors. This is more sustainable, and helps reduce sprawl.

• Economic Boost: These developments will bring more foot traffic and economic activity to surrounding businesses. They also create jobs (retail, construction) and long-term value for the tax base.

• Quality of Life: For residents, the mix of amenities (pool, paths, co-working) and proximity to retail means more convenience + a more vibrant neighborhood.

These areas are slated to be a case studies for how the western suburbs are evolving. They all help densify and modernize underused suburban zones, while providing meaningful walkable space and amenity-rich living.

These projects reflect a broader shift: the suburbs aren’t just places to live; they’re places to live well. With restaurant districts, public plazas, co-working, and design-forward apartments, western suburbs like Naperville are inching ever closer to a more urban, community-centered feel — without losing their suburban charm.