In cities as diverse as Nashville and Milwaukee, Charleston and Portland, Maine, retail rents have shot up by double-digit percentages over the last year alone. As the cost of space rises, urban neighborhoods that have long provided the kind of dense and varied environment in which entrepreneurs thrive are becoming increasingly inhospitable to them. Local businesses that serve the everyday needs of their communities are being forced out and replaced by national chains that can negotiate better rents or afford to subsidize a high-visibility location.
This new report from ILSR offers elected officials insights on what's causing commercial rents to skyrocket, and explores six broad policy solutions, with practical examples, that cities can use to keep commercial space appropriate, accessible, and affordable for independent businesses.
The report finds that the sharp rise in rents is happening across a range of communities, with some of the most intense pressure falling on businesses in lower income neighborhoods. And the trend isn't limited to retailers. The price of industrial space is rising rapidly too, jeopardizing a budding renaissance in urban manufacturing.
There's a public interest in the commercial side of the built environment, the report concludes, and smart city policy has an important role to play in creating an urban landscape in which locally owned businesses can thrive.