Thread: Immigrant population in relation to retail lease prices.

Hi,

I've been asking around on several forums and people don't seem to understand the question.

What I'm about to talk about isn't really discussed in academia and is a relatively new phenomena in the last 10-15 years.

Basically, there is small business retail space, and then of course there are big box retail like Bust Buy and Home Depot. The vast majority is small business lease space.

What determines small business retail rates is amount of traffic, neighborhoods, household incomes of the area etc. You know the stuff.

But that measure just isn't working anymore from what I am seeing around where I live. We have 'insanely high' retail spacing rates. Yet, a 50% immigrant population who will never spend into these small businesses.

Let me explain. If I decided to open up a fish and chip place, I will be told that the rate is so high because it's in x neighborhood and located off x street. But, what if half of the whole demographic in the area do not eat fish and chip in their diets, never have, and never will eat at my restaurant? Or sun tan, or dink bottled water. You get the idea.

Well I would say the price is twice as less in that case.

If half of the population in my city is born in another country, then you would imagine that half of all the small business retail is owned by immigrants. This is not happening. The participation into small business is very small here from the immigrant groups so we still have the people born inside the country trying to pursue their dreams and folding very quickly.

What is happening is that the traditional ways are beginning to crumble. I can honestly say that my city is an economic dead zone due to overly inflated retail lease space. If you know that x demographic never have, and never will spend into private small business, then why do the prices affect the retail rates?

Is there anyone who has noticed this phenomena where they live and what is being done about it or any recommendations. How would you recommend to correct the pricing of these small commercial spaces?

Even franchises are being sold hand over fist and aren't making money in these retail spots. The 'demographic' just isn't there to support it, yet, they are factored into the retail prices.

Please comment. I hope someone understands the question.