Press Release

Affordable Retail Rents Are Essential to a Successful Downtown

Landlords need to understand the economics of retailing in order to avoid vacancies.

(Boonton, NJ, May 14, 2010) — As we emerge from the recession, industry pundit N. David Milder says that the time is right, "for downtown organizations to work hard on encouraging small independent retailers to seek affordable rents, and for landlords to offer them."

Writing in the May issue of Downtown Idea Exchange, Milder describes the situation facing most downtown retailers, "In the new normal, small downtown retailers will be facing increased pressures to keep their operations lean and mean, because capturing sales from today's deliberate consumers is far more difficult than from the abnormally free-spending shoppers of the 1990s and 2000s. One budget line item they can focus on is the cost of the spaces they lease for their stores. This is a major long-term business expense and it is important that these retailers do not pay more than they can afford."

He notes that one practical solution is "balloon leases, where rents increase at an agreed-upon rate as the retailer's sales grow."

To see exactly how such a program can work, visit the Downtown Research & Development Center website: http://www.DowntownDevelopment.com/perspectives.php.

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About the Downtown Research & Development Center

For over 50 years, the Downtown Research & Development Center has acted as the information clearinghouse on practical strategies and tactics for revitalizing the hearts of our cities and towns.

The Group's main activities include publishing the widely influential Downtown Idea Exchange and Downtown Promotion Reporter newsletters; publishing relevant books and reports; and operating the DowntownDevelopment.com website.

Website: http://www.DowntownDevelopment.com