The answer might be in this 2010 Action Greensboro Study they'd rather I not talk about:
"Despite demand retail growth has been slow Despite the fact that downtown is attracting significant spending from visitors and a growing residential base, businesses have trouble staying open. Assuming an industry standard of 10% rent‐to‐sales ratio for successful retail, a business would need to generate $420,000 in annual sales in a typical downtown space of 3,000 SF with $14/SF rent. Local market data suggests that retailers in downtown Greensboro are achieving a lower sales volume, and spending closer to 25% of sales on rent. High start‐up costs compound already tight operating margins and impede the success of many storefront retail businesses. Downtown’s retail is currently approximately 15% vacant along Elm St, and anecdotal evidence suggests that many businesses do not survive the first year of operation.
Poor building conditions are the greatest economic barrier to the success of new retail. Many buildings in Greensboro were constructed in the early/mid‐1900s and are in need of major renovations. The cost of rehabilitating ground floor spaces and creating a “vanilla box” for retail use will range from $40‐$80 per square foot depending on the building’s condition and original design. This either drives rents higher or creates an extra upfront burden for the tenant. Many buildings have likely remained vacant because owners are unwilling to undertake the upgrade cost on a speculative basis."
And this one:
“Retail rents cannot fully support the cost of rehabilitating blighted buildings… Absent financial intervention, storefronts will remain vacant or will attract tenants of marginal quality and with a high probability of failure.”
In other words, after Robbie, DGI, Action Greensboro, Roy Carroll, Dawn Cheney and Nancy Hoffman finish their little Land Grab they'll be coming back for more money from the taxpayers. Why not go ahead and give that money to the people who own the buildings now? Or just let the buildings crumble to the ground?
Are you beginning to see through the boarded up windows?
"Despite demand retail growth has been slow Despite the fact that downtown is attracting significant spending from visitors and a growing residential base, businesses have trouble staying open. Assuming an industry standard of 10% rent‐to‐sales ratio for successful retail, a business would need to generate $420,000 in annual sales in a typical downtown space of 3,000 SF with $14/SF rent. Local market data suggests that retailers in downtown Greensboro are achieving a lower sales volume, and spending closer to 25% of sales on rent. High start‐up costs compound already tight operating margins and impede the success of many storefront retail businesses. Downtown’s retail is currently approximately 15% vacant along Elm St, and anecdotal evidence suggests that many businesses do not survive the first year of operation.
Poor building conditions are the greatest economic barrier to the success of new retail. Many buildings in Greensboro were constructed in the early/mid‐1900s and are in need of major renovations. The cost of rehabilitating ground floor spaces and creating a “vanilla box” for retail use will range from $40‐$80 per square foot depending on the building’s condition and original design. This either drives rents higher or creates an extra upfront burden for the tenant. Many buildings have likely remained vacant because owners are unwilling to undertake the upgrade cost on a speculative basis."
And this one:
“Retail rents cannot fully support the cost of rehabilitating blighted buildings… Absent financial intervention, storefronts will remain vacant or will attract tenants of marginal quality and with a high probability of failure.”
In other words, after Robbie, DGI, Action Greensboro, Roy Carroll, Dawn Cheney and Nancy Hoffman finish their little Land Grab they'll be coming back for more money from the taxpayers. Why not go ahead and give that money to the people who own the buildings now? Or just let the buildings crumble to the ground?
Are you beginning to see through the boarded up windows?
