Developments in Development Bubbling Along

first_img 0% Maybe I got a little excited last week with some talk about how tech might be slowing down and housing prices might come down with it – SocketSite says Bay Area home prices are still going strong and actually surged in December and Curbed cautiously predicts a return of climbing rents.Still, USA Today, ABC7 and the Chronicle all had stories this week about the impending (or possibly incipient) slowdown in tech and housing. Then again, BeyondChron argues that since the biggest employers in the city are mostly in healthcare, not tech, a tech slowdown doesn’t necessarily mean a crash.Crash or no, booming commercial prices partially due to generally inflated real estate values are hitting small businesses in this neighborhood pretty hard. You probably already know that the rent control that keeps many long-term residents more or less safe from the ridiculous prices does not exist for commercial renters, and prices are, well, nuts.Trouble for small businesses on Valencia Street has been widely predicted given the commercial corridor’s rents. We wrote a story on this entitled “Is Valencia Street Too Expensive for Its Own Good?” and I think it’s safe to say that the answer is a resounding yes. A short span of the street, which has already seen the closure of Viracocha and Aldea Niños and a close call for ATA, will have lost four more businesses by the end of February. Currents and DEMA announced their permanent closures, while Lost Weekend Video and Freewheel cyclery will both relocate. A few other shops have seen their rents double or almost triple and are holding on more or less for the sake of holding on, fearing that the alternative is to have no job at all. Elsewhere, business owners have told me that small businesses are also caught between sky-high rents and the threat of online sales. One even said that a person who wandered into his shop asked him point-blank if she could get the item she was looking at cheaper online.To be fair, some of the businesses shuttering are doing so out of personal preference. DEMA’s owner said she is exiting the retail business in part because it just isn’t fun anymore. Werkstatt, the motorcycle repair shop on 16th and Capp streets, closed last month. Capp Street Crap reports that its owner, Jennifer Bromme, is simply switching gears – to be a full-time mom to her two children. Her former space will now be leased by a construction company.Then there’s the mystery closures. Mission Creek Cafe shut down pretty much without fanfare, and Yo Yo Sushi has closed, though a notice in the window indicates it may simply be under new ownership.Though a baffling number of storefronts on Valencia and Mission streets remain empty for a long time after commercial tenants leave, we are seeing some revival.In the former Apartment space on 18th just off Valencia, we now have the Lexington Standard. The Chronicle spoke with its owners, who also run Aggregate Supply, about their goal to make the clothing and furniture store “less like Union Square.”On Valencia itself, next to the future One Medical building which is nearing completion, the former Black & Gold has reopened as a trifecta of pop-ups (one of which is Mission retailer Schatzi, which came out of a back room of Schauplatz, also on Valencia) more or less under the Black & Gold umbrella. The vintage-meets-new furniture and décor shop opened quietly in December.Most of the businesses whose closures we’ve heard about recently were in the 18-22 year-old range. You might remember voting for Proposition J last November – you know, the Legacy Business thing? It applies to businesses that are either 30 years old or older, OR are 20 years old and threatened with displacement. Supervisor David Campos, the arbiter of this measure, has nominated his first business for receiving funds: Precita Eyes Muralists.After nomination there are still several steps to go to determine whether the business can receive aid, but if Precita Eyes is selected it may receive an annual $500 per full-time employee, or a bonus of $4.50 a square foot for their landlord if that landlord extends the lease to ten years, from the city. All this while Precita is raising money to also help a nonprofit make good on its deal to buy the property where Precita’s mural arts studio is located.Oh yeah! And Dolores Park is reopening next week. Hopefully this glow in the dark party can survive a little rain shower. center_img Tags: development • Developments in Development Share this: FacebookTwitterRedditemail,0%last_img

Leave a Reply

Your email address will not be published. Required fields are marked *