Downtown Evanston's retail vacancy rate has hovered near 6% in recent quarters, down sharply from above 11% in mid-2024. The city plans to launch a Retail Incubator & Pop-Up Program in October 2026 to keep filling empty storefronts.

The Daily Northwestern reported on May 27, 2026, that city officials and local business leaders are working to reduce the number of vacant spaces downtown. The city has also floated a possible tax on vacant storefronts, though no rate, timeline, or Council vote has been announced.

City economic development data shows the downtown vacancy rate dropped from 11.8% in the second quarter of 2024 to 5.8% by year's end, then fluctuated between 5.9% and 7.3% through the first three quarters of 2025. Downtown's rate remains nearly double the citywide average, which ranged from 3.3% to 4.9% over the same period.

The pop-up program would place short-term tenants in empty retail spaces. The city has confirmed an October 2026 launch but has not announced application details or participating properties.

Both initiatives fall under the Evanston Thrives Retail District Action Plan, which City Council adopted on May 8, 2023, with $3 million earmarked for economic development across eight business districts. Paul Zalmezak, the city's Economic Development Division Manager, oversees the division managing those efforts. Evanston Thrives funding must be implemented by December 31, 2026.

The next public milestone is the pop-up program's October launch. No Council vote on the vacant-storefront tax has been scheduled.