Parking, rent reasons suggested for downtown St. John's slowdown
Shoppers flocked to the downtown area of St. John's this past weekend, lured by the prospect of tax-free purchases.
But mixed among the sale signs and the hustle and bustle of early Christmas shopping, some may also have noticed the number of empty storefronts with "for lease" banners in the windows and doors.
The organization whose mandate is to make the downtown an attractive place to live, shop, work and visit have also taken notice.
"There are some vacancies ... it cannot be denied," said Gaylynne Lambert, the marketing, special events and public relations co-ordinator with Downtown St. John's, formerly known as the Downtown Development Corporation.
She said there's a combination of reasons for the vacancies, some of it being the typical ebb and flow of a downtown, but it's more than that.
The winter of 2014 was an especially hard one for the downtown as city crews struggled to keep streets and sidewalks open and parking spots available.
Some say the downturn caused by last winter's severe weather never really ended.
"The winter was really, really difficult," Lambert explained.
"It took a long time for people to start going back downtown again. So of course our winter weather did play a factor."
Lambert said the price to occupy retail space in the city is also a factor.
With prosperity comes higher costs, she said.
"Rents are starting to get high everywhere in the city."
She said every property owner wants the highest income possible from their property.
Lull in the economy
David Levine, who owns multiple buildings in the downtown and is based in Toronto, said rents are where they should be, but added there has been a lull in the economy, caused largely by what he suggested is a lack of political steadiness.
"I just think we haven't had political direction for some time until the premier is actually in his seat and replenishing everything that's going on. We've had, you know, a caretaker government for sometime," said Levine.
Levine said there's been a shortage of positive economic announcements, which has decreased market confidence.
I just think we haven't had political direction for some time until the premier is actually in his seat and replenishing everything that's going on. We've had, you know, a caretaker government for sometime.- David Levine
"A lot of things that actually buoy activity is the concept that things are going to happen. The oil projects, the new energy projects ... we haven't had any of that kind of talk in the last 12 to 18 months," he said.
There has been a noticeable turnover on Water Street and other areas, with the trend continuing towards entertainment.
Some businesses ventures are simply not suited to the downtown, and as they move out, the downtown experience slowly changes.
In the case of Byron's European Collections for Men, owner Byron Murphy relocated from Water Street to Duckworth Street because he needed a larger space.
He believes there will always be a unique collection of independently owned businesses in the downtown, but has noticed an expansion of entertainment type business to areas beyond George Street.
"George Street is strong and busy," he said. "But I find that Water Street and Harbour Drive is certainly trending to a certain area. I think it's good for the city and everything else. But I see it more coffee shop, smoothie shops, restaurants, pubs, bars ..."
A changing landscape
The vacancies are in stark contrast to the extensive amount of development that has taken place in the downtown in recent years.
Modern new buildings have sprung up, changing the landscape.
But a closure look at street level reveals plenty of vacant space in places such as Water Street.
Storefronts formerly occupied by businesses such as Second Page Bookstore, The Tickle Trunk, O'Brien's, Velma's, Taj Mahal, the Chophouse, Gallery Shoes, the post coffee and Western Boutique are now vacant.
These entities have either closed or relocated.
On the western end of Water Street, there's a cluster of vacancies, on both sides.
Many of the vacant properties are owned by the same landlord, said Lambert.
"If the landlord is satisfied to let that sit there and you know be vacant and be the hole in the tooth of the smile that is downtown, there's nothing we can do about that. I mean I guess it depends how deep their pockets are," she said.
It took a long time for people to start going back downtown again. So of course our winter weather did play a factor.- Gaylynne Lambert
Levine, meanwhile, added another element to the issue.
He said there are only so many people looking to establish businesses at any given time, and it takes time to find new tenants.
As such, he said lower rents won't always translate into higher occupancy rates.
"A lot of times the tenants don't exist in the marketplace and it's not an issue that you lower your dollar value. Because even if you lower your dollar value it doesn't create somebody that doesn't exist."
A vibrant downtown
Not everyone agrees that the downtown economy is in a funk.
"You know it is really vibrant down here and the people that are operating businesses down here really, you know, they're into it," said Peg Norman, owner of the Travel Bug.
She referenced Rocket Bakery and Fresh Rood on Water Street as a recent success story.
"Look at The Rocket and how much work that they've done and the investment that they've put into that business alone," she said.
"So it's a happening place and there may be a few empty storefronts, but I suspect that that may very well be a product of the owners of those properties demanding rents that are not appropriate to the environment."
With files from Adam Walsh