Comments on: Why Do U Street Storefronts Remain Vacant? Here Are Four Reasons.

By: lee aikin

lee aikin — Tue, 29 Sep 2009 17:38:54 +0000

Some years ago a friend of mine had a nice little botique within a block of the DuPont Circle Q St. Metro entrance. I helped there a few times so gained a real sense of the amount of business, costs of rent, etc. Given the amount of the rent, and the underlying taxes, the business eventually failed even thought the manager was good and the merchandise attractive. If the city wants to expand diversity of stores in some neighborhoods, it should consider giving a tax break to some properties providing the owner gives the renter a tax break. They could designate the kinds of businesses though would be desirable in the neighborhood for this special dispensation with community input.

Some years ago I served on a Mayoral task force on street vending. One of the issues was Pennsylvania Ave between the Capitol and the White House. Bigger business interests were against having any street vending there, but it was virtually impossible for any store to survive economically except a national chain that could afford to use a Penn. Ave. store as an advertising (loss leader) site. Going down Penn. Ave. still feels like you are walking a monumental ghost town. You can see the same phenomena at work around DuPont Circle where more recent entrants are mostly big chains which can afford to not earn big there.

By: Why So Many Vacant Storefronts? Cleveland Park’s Got a Zoning Problem - Housing Complex - Washington City Paper

Thu, 10 Sep 2009 14:05:19 +0000

[...] week, we discussed vacant properties on U Street. This week, Cleveland Park’s taking the hot [...]

By: Top Blog Posts of the Past Week - Housing Complex - Washington City Paper

Top Blog Posts of the Past Week - Housing Complex - Washington City Paper — Sat, 05 Sep 2009 16:33:29 +0000

[...] (2) Why Do U Street Storefronts Remain Vacant? Here Are Four Reasons [...]

By: Sir Spicious

Sir Spicious — Wed, 02 Sep 2009 15:38:53 +0000

@ Jaime,
There is incentive for the property owner to enter into a short-term lease, but probably not for a store-owner. Moving a store 2 years after getting started could very well be a store killer. And it makes not some, but a lot, of business sense to hold out for more rent if you're confident that it will be dark space for a year or two. Does it suck for the neighborhood? In the short-term, maybe, but if waiting an extra year brings a more long-term, more creditworthy tenant, I'd call it a win for the neighborhood as well.

Also, I think rolling back the vacant property rate is a mistake, but in this instance, I don't think that's the driver.

By: Jamie

Jamie — Wed, 02 Sep 2009 14:25:35 +0000

"High expectations" -- I think what you really mean is "would rather forego market rent for a couple years speculating that when the economy recovers you'll be able to get twice as much." While it makes some business sense (if the owner has deep pockets) it's shortsighted and really bad for the community. Sure, the owner doesn't want to get locked into a ten-year lease if he thinks that he can get twice as much in a couple years. But there should be an incentive for them to be flexible enough to negotiate terms that reflect the market reality today. They could offer shorter leases, or have escalation clauses. I am sure there are many kinds of businesses that would be willing to accept a shorter lease than not be able to open at all. And by incentive, I mean high taxes on vacant properties.

By: Sir Spicious

Sir Spicious — Wed, 02 Sep 2009 13:06:15 +0000

Much of U St/14th St is under an Arts Overlay. This is a special zoning classification that limits the amount of restaurants to 25% of the window space of the area. At this point, that 25% is maxed out. So restaurants and bars can't fill any of the available space in those corridors. And since the area has really no office presence, in daytime there aren't enough people around to make other businesses profitable.

By: WaPo Explains It All: Loose Lips Daily - City Desk - Washington City Paper

WaPo Explains It All: Loose Lips Daily - City Desk - Washington City Paper — Wed, 02 Sep 2009 12:33:18 +0000

[...] Matthew Yglesias wonders why (DCist, too) empty storefronts persist on busy thoroughfares, like U Street; WCP reporter Ruth Samuelson provides answers. [...]