Why So Many Empty Stores? 7 Possible Reasons
By Richard Brody
When one travels through nearly any community, he discovers, and observes, a number of empty stores, which, quite often, remain unoccupied, for lengthy periods of time. While there are a variety of reasons and causes, there can be little doubt, there is a cause, for concern, because of its impact and implications, on the overall economy. With this in mind, this article will briefly examine, and discuss, 7 possible reasons, for this, and, possibilities, suggestions, etc.
1. Location: Some areas are far more challenged, keeping and attracting stores, because of several factors. Some considerations in this regard, include, a lack of sufficient parking, an unattractive product – mix, or significant nearby competition. Not every area is the best option, for attracting certain businesses, and therefore, there must be an attempt, to change, the focus!
2. Size; shape; or unique design: Are the store sizes, either, too large or too small? Is the shape, such, where it reduces the attractiveness? Is there something about the design, or layout, which makes it challenging to attract quality, new businesses?
3. Asking too much; pricing: The laws of supply, and demand, would indicate, pricing is a significant factor. Wouldn’t it make sense, for a landlord, to adjust his pricing and/ or terms, rather than having the property, remain vacant? When the price is too high, you eliminate certain businesses, from consideration!
4. Permits/ building codes: Some localities have made changes to their building codes, and when existing businesses, move out, even the identical type of business, may not be permitted. For example, if the parking regulations/ requirements, for restaurants, and/ or other types of businesses, require specific amounts and/ or types of parking and parking spots, it makes it far more challenging! In addition, in some locations, the local municipality imposes an involved, expensive process, to obtain the necessary permits, needed!
5. Economic changes (overall and tenants): Obviously, the overall economic conditions, factors heavily into this trend. In addition, there might be specific issues, related to this locality. In addition, if a landlord, significantly increases, his rent terms and pricing, when the existing lease expires, many businesses are forced, to decide to close!
6. Change, in focus: Perhaps, there are too many, of a specific type of business, in this area, and/ or the area has changed, either from a safety, and/ or a socio – economic stand – point. This, often, means, it might make sense, to change the focus, and re – think, how to best fit the space, to the needs, of the local community.
7. Under – capitalized: A primary reason, many businesses fail, is they are under – capitalized, and thus, either don’t sufficient, properly market, or are ill – prepared for slower periods and eventualities.
Wouldn’t it make more sense, to effectively plan, and maintain the occupancy of local businesses, by endorsing, a Support Your Local Business, and/ or developing more, relevant, sustainable businesses, which have some unique factor, which makes a compelling local attraction? Until there is some way to balance the landlord’s desire for profit, with reality, and get people, on, the same – page, we will continue to witness this blight!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonRealEstateOffice.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE
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