Should Pittsburgh go on a business district diet? (Plum, Butler: salons, lease)
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I've observed in the past that although Pittsburgh has recovered well from the recession, our business districts tend to be a bit lagging in places. Virtually every major business district I can think of (except maybe in Shadyside) has a fair number of vacant storefronts, or storefronts used for businesses which in earlier times would not be on the first floor in such a prominent location (design firms, for example). The modern virbant commercial district seems to consist of around 50% bars and restaurants, with a smattering of service businesses (salons), necessities (banks, convenience stores), and trendy boutiques filling things out. This just isn't enough in many cases.
At the same time, within an urban context, having as many walkable business districts as possible is a good thing. Despite being small, and still having some vacancy, I'd never say that the Reynolds Street business district in Point Breeze is a bad thing. Nor do I think Byrant Street in Highland Park is bad. They are a valuable asset to the area immediately surrounding them, even if they're not a destination.
Instead I wonder about the large business districts in the city. For example, Butler, Penn, and Liberty in the East End. In my hood, most of Butler Street is doing great. But there are notable dead zones. For example, Butler Street from 47th to 51st is adversely hurt by the cemetery wall on the opposite side of the street creating a dead zone. There are a few service type businesses here, but there's also a lot of quasi-abandoned storefronts, and a fair number of houses directly on Butler Street. There will probably never be a continuous commercial fabric, so rezoning the area to reflect its largely residential status seems better.
There are other similar examples. Penn Avenue, for example, is zoned commercial through to East Liberty. But it has a number of dead zones. Between the heart of the Strip's commercial area and the Penn/Main intersection, the number of businesses is pretty weak. Then it dies out again when it passes Allegheny Cemetery, and has a few blocks of vibrancy through Garfield. Then by Evaline it becomes mostly residential on one side of the road for two blocks, and picks up again as a fairly not-pedestrian friendly street, with islands of activity until you get into Penn Circle. Liberty Avenue is really active in Bloomfield until you hit West Penn, and dies for all intents soon afterward.
Anyway, these are just my musings. Feel free to chime in, or disagree.
No, because this would drastically increase the prices of commercial and retail storefronts, raising the barrier to entry for people who want to try their hand at a new business. And personally, I think this current low barrier to entry is one of the best things about Pittsburgh. If you open something awesome, people will find you.
The problem is that the rent is too high for most start ups to dare. I've done my research on this issue. Most building owners prefer for storefronts to stay empty for years instead of renting for lower prices. My girlfriend's husband rented a storefront that had been vacant for decades because the price seemed like a steal by Boston standards. If they hadn't moved here from Boston, that storefront would still be empty. These landlords seem afraid to lower the rent for fear they'll miss out on a great tenant willing to pay top dollar. Many of the long term businesses' storefronts are owned by the business, not a landlord. And then there are the vanity businesses, like Culture Shop in South Side, which exists to write off leisure world travel expenses instead of income to support a household.
Another issue is that many Pittsburghers are too conservative to go into business for themselves. With a low cost of living and low unemployment, they can get by working for the man. People need motivated to start businesses. Steelworkers started landscaping businesses after the crash of the steel industry just to survive. When I was walking around Lawrenceville, I met many business owners my age or older who decided to get out of the rat race because they feared relying on employers for income as they entered the period of their lives when they were likely to lose their jobs due to age discrimination.
Then there is the internet. Artists are selling their wares on etsy and facebook. I found an article about an up and coming clothing designer. After researching her, I learned she only sells on Facebook. This isn't a business she uses for survival. It's obviously just a hobby since she posted apologizing to her clients that she hasn't made anything for months. Since the internet is providing lots of competition for brick and mortar stores that have landlords demanding high rent, that means most business districts will have service type businesses such as food. But how many smoothies can a smoothie shop owner sell to pay the high storefront rent AND provide an living income?
I've seen lots of great businesses open in the wrong business districts, only to go out of business within 6 months. Their problem was opening where they could afford and the clientele simply wasn't there.
When I was walking through East Liberty the other day, I was blown away by all of the empty storefronts that are already remodeled. The place is a ghost town, but the landlords want top dollar for the spaces. Who is going to move their business there when the rent is high and there aren't any pedestrians with money walking around? If the rent was lower, appropriate for the lack of customers, and multiple businesses opened at once, it would become a go-to destination. But nobody is going to go into East Liberty as one random business that dares to open all by itself. Not at those high rents. Not with having to commit to a 3 year lease and the requirement for spouses sign the lease too so startups can lose their homes and everything their startup fails. It's a catch-22 because their business would more likely succeed if they weren't starting off with high rent, and they could pay high rent in future years.
These are just some of the reasons more Pittsburghers aren't opening businesses in storefronts. IMO, Pittsburgh doesn't need to go on a business district diet. Pittsburgh needs to figure out a way to make opening a business desirable. I don't know the answer. Perhaps property tax breaks to property owners who lease out their spaces instead of leaving the storefronts vacant. Maybe if they were inspired to lease out their storefronts, they might lower the rent or drop the 3 year lease requirement for a startup.
No, because this would drastically increase the prices of commercial and retail storefronts, raising the barrier to entry for people who want to try their hand at a new business. And personally, I think this current low barrier to entry is one of the best things about Pittsburgh. If you open something awesome, people will find you.
The bold is not true. I've seen some awesome businesses open throughout the years. People didn't find them. They only lasted a few months.
At the same time, within an urban context, having as many walkable business districts as possible is a good thing. Despite being small, and still having some vacancy, I'd never say that the Reynolds Street business district in Point Breeze is a bad thing. Nor do I think Byrant Street in Highland Park is bad. They are a valuable asset to the area immediately surrounding them, even if they're not a destination.
Bryant St is definitely a destination. People are parked all over the area in the evenings and it is impossible to get a table at E2 or Park Brugges on a Friday or Saturday night. Residents south of Bryant complain about lack of parking on their blocks.
The market does really well and he really only serves local residents because you can get the same things at Whole Foods or Market District - often for less money.
On the other hand, E2 had a line out of the door on Sunday when they opened during the marathon and there was no road access to there so it was all walkers and bikers.
Bryant St is definitely a destination. People are parked all over the area in the evenings and it is impossible to get a table at E2 or Park Brugges on a Friday or Saturday night. Residents south of Bryant complain about lack of parking on their blocks.
The market does really well and he really only serves local residents because you can get the same things at Whole Foods or Market District - often for less money.
On the other hand, E2 had a line out of the door on Sunday when they opened during the marathon and there was no road access to there so it was all walkers and bikers.
I thought Bryant Street was awesome when I checked it out.
I wish it had more storefronts available. They're all rented occupied except for one that is a dump.
The new development will have storefronts, but that's too far in the future for me.
I've observed in the past that although Pittsburgh has recovered well from the recession, our business districts tend to be a bit lagging in places. Virtually every major business district I can think of (except maybe in Shadyside) has a fair number of vacant storefronts, or storefronts used for businesses which in earlier times would not be on the first floor in such a prominent location (design firms, for example). The modern virbant commercial district seems to consist of around 50% bars and restaurants, with a smattering of service businesses (salons), necessities (banks, convenience stores), and trendy boutiques filling things out. This just isn't enough in many cases.
Anyway, these are just my musings. Feel free to chime in, or disagree.
If Pittsburgh becomes more densely packed and pedestrian oriented, and less auto-centered, these old storefronts and more will be needed for retail establishment to sell essentials to the populace.
When Pittsburgh was less auto-centered in the 1920's and 1930's, there were a lot of lively little business districts for people to buy groceries, meat, pharmaceutical goods etc., in every neighborhood and you can still see the remnants of these mini business districts.
Here in L'ville, there was a Hatfield St. business district, a gathering of several storefronts at 45th and Plummer, as well as a grouping of storefronts on Stanton near the top of McCandless- among other locations throughout the city. If Pittsburgh achieves a denser, less auto-centered presence, people aren't going to want to haul there provisions all the way from the Waterworks Wal-mart or East Lib Target, and these old locations might be reborn.
The problem is that the rent is too high for most start ups to dare. I've done my research on this issue. Most building owners prefer for storefronts to stay empty for years instead of renting for lower prices. My girlfriend's husband rented a storefront that had been vacant for decades because the price seemed like a steal by Boston standards. If they hadn't moved here from Boston, that storefront would still be empty. These landlords seem afraid to lower the rent for fear they'll miss out on a great tenant willing to pay top dollar. Many of the long term businesses' storefronts are owned by the business, not a landlord. And then there are the vanity businesses, like Culture Shop in South Side, which exists to write off leisure world travel expenses instead of income to support a household.
Another issue is that many Pittsburghers are too conservative to go into business for themselves. With a low cost of living and low unemployment, they can get by working for the man. People need motivated to start businesses. Steelworkers started landscaping businesses after the crash of the steel industry just to survive. When I was walking around Lawrenceville, I met many business owners my age or older who decided to get out of the rat race because they feared relying on employers for income as they entered the period of their lives when they were likely to lose their jobs due to age discrimination.
Then there is the internet. Artists are selling their wares on etsy and facebook. I found an article about an up and coming clothing designer. After researching her, I learned she only sells on Facebook. This isn't a business she uses for survival. It's obviously just a hobby since she posted apologizing to her clients that she hasn't made anything for months. Since the internet is providing lots of competition for brick and mortar stores that have landlords demanding high rent, that means most business districts will have service type businesses such as food. But how many smoothies can a smoothie shop owner sell to pay the high storefront rent AND provide an living income?
I've seen lots of great businesses open in the wrong business districts, only to go out of business within 6 months. Their problem was opening where they could afford and the clientele simply wasn't there.
When I was walking through East Liberty the other day, I was blown away by all of the empty storefronts that are already remodeled. The place is a ghost town, but the landlords want top dollar for the spaces. Who is going to move their business there when the rent is high and there aren't any pedestrians with money walking around? If the rent was lower, appropriate for the lack of customers, and multiple businesses opened at once, it would become a go-to destination. But nobody is going to go into East Liberty as one random business that dares to open all by itself. Not at those high rents. Not with having to commit to a 3 year lease and the requirement for spouses sign the lease too so startups can lose their homes and everything their startup fails. It's a catch-22 because their business would more likely succeed if they weren't starting off with high rent, and they could pay high rent in future years.
These are just some of the reasons more Pittsburghers aren't opening businesses in storefronts. IMO, Pittsburgh doesn't need to go on a business district diet. Pittsburgh needs to figure out a way to make opening a business desirable. I don't know the answer. Perhaps property tax breaks to property owners who lease out their spaces instead of leaving the storefronts vacant. Maybe if they were inspired to lease out their storefronts, they might lower the rent or drop the 3 year lease requirement for a startup.
The problem is that the rent is too high for most start ups to dare...
this is one of the key roles food trucks can play, someone can get some experience in the game initially risking a lot less. perhaps more importantly, markets, often funded by cities for thousands of years, serve as business incubators. it's easier to get a stand in the market than to get a whole storefront that may or may not be part of a business district with complementary businesses. today, the whole market is owned by one company that often has one national distribution scheme which obviously favors big over small business and the market owner takes payments for shelf space visibility.
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