Blame the Banks for All Those Boring Chain Stores Ruining Your City
Commercial landlords are holding out for retailers that can boost property values and credit ratings.
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Not long after he leased out the shell of a once-iconic Phoenix steakhouse, developer Lorenzo Perez got an email from a broker. He learned that the new space, now home to an award-winning restaurant, a small garden store, and an independent bookshop, was worth about $195 a square foot. Nearby retail properties, the broker said, were being valued at 25 percent more.
Why the difference? While Perez was courting local businesses, his competitors had landed large corporate tenants.