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Real Estate
Reply to "Restaurant out of business at Cathedral Commons"
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[quote=Anonymous][quote=Anonymous][quote]Nimbies make is hard for small businesses to survive[/quote] This is 100% bass-ackward. If a developer gets his (it's always "his") way and gets to build a 13-story mixed use piece of shit construction over the objection of the people most directly affected, then that developer will want a ROI. Charging high commercial rent for the 1st floor space is one way to ensure ROI. Who can pay for expensive commercial leases? Answer: corporate chains, national banks, mortgage companies. See, e.g. Panera Chipotle CitiBank Silver Diner CAVA WellsFargo OrangeTheory CVS Petco Unleashed Chik-Fil-A MattressFirm Starbucks BlueMercury TrueFood FiveGuys . . . . . occasionally, and typically as an explicit contract agreement as a condition to override local zoning codes, a developer will set aside a small % of the commercial space in the new project that is offered at a below-market rent to a lower-revenue business. That's how you see the one, tiny mom-and-pop nail salon or dry cleaner squeezed in between the CVS and WellsFargo in these millennial dormitories. [/quote] This is spot on. (Plus nail salons get no tenant improvement dollars, require little in the way of build out, and are willing to sign very short term leases, so they provide the landlords with a lot of flexibility to make space available to more attractive retail prospects, while providing additional lease revenue.)[/quote]
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