Big changes are brewing in Wheeling’s cannabis scene as OKAY Cannabis, located at 781 N. Milwaukee Ave., is set to close its doors by the end of May. This move will reduce Wheeling to a dispensary, Hatch, which has been operating in the area for several years. For residents and cannabis enthusiasts in the northwest suburbs, this development prompts questions about market dynamics and the future of a prominent commercial property.
Adding a layer to this news, about a month ago, Couch Lock’d received an anonymous message from an OKAY Cannabis employee informing us that they had been told the store would be closing at the end of May. This early heads-up now aligns with the official confirmation from the village.
The impending closure of OKAY Cannabis hasn’t come as a complete surprise to Wheeling’s economic development team. Len Becker, the village’s Economic Development Director, confirmed that the village was aware of the upcoming closure for several weeks, and the property has already been listed for sublease.
This substantial property, nearly 12,000 square feet encompassing retail, a restaurant space, and a consumption lounge, has a history of different ventures. Prior to OKAY Cannabis and its recently departed bakery co-tenant, the location housed Twin Peaks restaurant, and before that, Claim Jumpers. The bakery component, which had already ceased operations a couple of months ago, struggled with business and saw a change in ownership, ultimately failing to gain traction.
Becker highlighted the property’s prime location, directly across from the Westin Hotel and surrounded by successful establishments like Cooper’s Hawk, Spears, and District Brew Yards.
However, he pointed to market saturation and decreasing sales as significant factors impacting the current cannabis market. Becker noted that purchasing from a dispensary is often a deliberate decision rather than an impulse buy. He contrasted OKAY Cannabis’s visibility challenges, being near an overpass, with Hatch’s more prominent location by a traffic signal, which offers greater visibility to passing traffic.
So, what’s on the horizon for this expansive and strategically located property? The village is actively seeking a new tenant, with a clear focus on attracting unique, destination-oriented businesses. Given the fully intact kitchen facilities, restaurant groups are a primary target, including those from Chicago’s urban core who might be considering suburban expansion. Becker even suggested the possibility of dividing the large space to accommodate two different concepts potentially sharing a single kitchen.
From a zoning perspective, the property is already designated mixed-use (MX). This means a new business, such as a restaurant, is properly zoned, and village approval would primarily be needed for changes to the building’s appearance or for requests related to alcohol service or video gaming. Becker also indicated that demolition is unlikely given current construction costs.
The loss of one dispensary is not expected to significantly impact the village’s revenue. Becker explained that cannabis sales are generally plateauing or decreasing. The village’s focus for this space is on attracting businesses that generate more stable sales tax revenue, such as restaurants or entertainment venues.
Becker is optimistic that the space could be reoccupied by the end of this year, though the timeline will depend on the extent of any necessary build-out or improvements for the next operator. The future of this prominent Wheeling location remains an open question, and its next occupant will certainly shape the local commercial landscape.
As For those who attended their Baked Bingos and are looking for more elevated experiences, check out our Baked Bingos at Couch Lock’d! We’ve got the good times you’re looking for.
Written by Patrick Vinson (Midwest Dazed)
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