Yes, We Need More Retail Downtown

Yes, We Need More Retail Downtown

Full disclosure. I am a brick and mortar guy. My wife Sue and I have owned and operated a retail business in downtown St. Petersburg for nearly 30 years. We started on the 500 Block of Central Avenue, moved to BayWalk soon after it opened and finally relocated to Beach Drive in 2009.

I 100% believe that despite Amazon and on line shopping, a successful downtown requires a critical mass of retail options. I would suggest we are far from that goal in downtown St. Petersburg. Restaurants and bars are important draws but local, independent retail is what can create thriving city blocks. Mixed use isn’t simply another pizza place, gym, salon and bar. While we clearly need services for downtown residents and workers, we also need more interesting stores where folks can shop, especially after dinner. Our local merchants and restaurants are what make us different from other cities. Those businesses should be valued and supported, not forced to go out of business due to unrealistic rent combined with the ease of on line shopping. Whether a consumer or landlord, if you truly value local business, you need to actively demonstrate your support.

As I drive through downtown and take note of the condos and apartments under construction, I am drawn to all of the new retail space being created on the ground floor of every new building. As a long time downtown retailer, I ask myself who is going to occupy the thousands and thousands of commercial square feet being created every week?

Successful retail requires visibility, foot traffic, convenient parking (I didn’t say free parking) and affordable rent. Even with the potential for the first three, the most well thought out, comprehensive business plan will not be successful if the rent is not affordable. If the rent is too high, storefronts remain empty and empty storefronts do not create synergy nor generate foot traffic and without foot traffic, there is no business for those trying to stay afloat. The cycle created by unrealistic rent and empty storefronts is simply a set up for the new business to fail and soon after, the nearby and neighboring businesses risk meeting a similar fate.

I challenge downtown landlords to give greater thought to tenant mix and reconsider rent structure if you value local, independent, retail tenants. I would think keeping a retail space occupied and receiving rent every month is more desirable then having to find a new tenant who will convince themselves that they can generate enough revenue to cover the $40 p.s.f. rent on their 1500 sf space only to go out of business 7 months down the road and forcing you to restart the leasing process once again.

Landlords and tenants need to enter into a partnership where both parties can be successful. The goal should be long term success for both – not looming economic disaster for the over extended tenant and month after month of zero rental income for the landlord.

Empty storefronts are not a good look for our city nor does it help the property values of the owners and renters living above the vacant retail spaces.

My hope is that realistic rent combined with appropriate tenant mix will lead to a more successful city for all of us. While some express concern of overbuilding, I see opportunity to create a more engaging downtown with greater retail options that remain open into the evening. If implemented with thought, realistic expectation and perhaps a small dose of compassion, landlords can still profit and more local entrepreneurs can see their dreams realized.

Our city can grow but I hope we stay local.