An interesting article in Medil Reports discussing how chains are hurting local retailers on South Michigan. By South Michigan they're not talking about the South Loop's south Michigan, but it's a relevant story and something that is close to our minds in the Sloop:For 31 years, Poster Plus was one of the premier shops for buying a Chicago souvenir direct from Michigan Avenue.
But this month, the venerable art dealer announced it's moving from 200 S. Michigan Ave. It couldn't come to terms with the landlord, Philadelphia-based BPG Properties Ltd., over a rent increase, according to David Gartler, the store’s owner.
The store is not alone in facing pressure from rising rental rates on South Michigan Avenue. There are at least four empty retail stores between Monroe Street and Congress Parkway, including one adjacent to Poster Plus where a Potbelly Sandwich Works franchise is slated to move in but has yet to begin construction. Tenants say landlords have proven unwilling to come to terms with smaller clients, however stable their business might be.
The looming question is whether well-heeled chains will drive out the locally-owned independent.Landlords contend that Millenium Park and nearby new developments justify higher rent.
Obviously our dynamic is slightly different in the Sloop. We have vacant retail. Not really local retailers getting pushed out by chains (unless you think Winestyles and South Loop Wine Shop getting pushed out by grocery stores falls into this category). Regardless, the common thread is that the prices being asked by the owners seem to be high (or at least that's what we've heard from various people in the Sloop).
Let us know your thoughts...
(Image from Medil Reports)
(Hat tip: Curbed Chicago!)
Damn. You think they'd know how to spell "Millennium" at the very least.
ReplyDelete"By South Michigan they're not talking about the South Loop's south Michigan, but it's a relevant story and something that is close to our minds in the Sloop".
ReplyDeleteAnd when you make a distinction between "South part of the Loop" and "South of the Loop", you find yourself slicing the hair finer and finer.
Those of us who live closer to downtown will seldom go South of Roosevelt. We're equidistant, and so the South Loop consists of both areas. We don't exclude areas: we're inclusive in our definition--you should try to do so as well.
@2:42 - no need to go and get your panties in a bunch over this one. 200 s Michigan not only isnt part of the south loop, it's not even south of the loop, but East of the loop. Its right in the middle of a major tourist area and across from the art institute. So, yes, when talking about a trend that is occurring in a very different commercial area that is a mile away from the one that is actually IN the south loop, but is on the same street, it's appropriate to make a distinction to avoid confusion.
ReplyDeleteFor the record, I am also equidistant between the loop and Roosevelt. Don't worry, I'm sure sloopy loves us too.
Since this blog, and almost all of its followers, are so gung-ho in favor of Trader Joe's, I would think that Sloopy and his followers are in favor of chain stores.
ReplyDeleteAs long as any tenant (chain or local) is willing to pay the rent asked by a landlord, the asking rents are not too high. That is a market rent. If neighboring residents are disappointed to see a long-time local retailer leave a storefront, perhaps they should have shopped at the store more frequently so the retailer could have afforded the higher rent and remained in business.
ReplyDeleteIt's a poster store ....let's just leave it at that. I'd rather see a restaurant or bar in that space. Sad it took 31 years to come to this
ReplyDeleteI believe the south loop will become mostly chain stores. I don't blame the landowners, they are business people seeking higher profits that can only come from the chains.
ReplyDeleteI think small business owners should open up shop in communities where they can be more succesful. I rarely see sbs going out of business in places on the south side like hyde park , beverly, chatham, kenwood and bronzeville. Hyde park has had a borders co exist with local indie book stores which stayed thriving.
Exactly. There is a big difference between the "South Loop" and the south part of the loop, which happens to be dominated by Millennium Park, which explains rising rents.
ReplyDeleteit's much better to have to deal with the problems brought on by rising rents than those that accompany declining rents...
ReplyDeleteWho cares if it's not in the south loop! Whis is a real problem where rent levels are so severe, opening a business is almost impossible.
ReplyDeleteThat poster store is a gem, they provide the most unique Chicago gifts in the city and it is located in what I consider the HEART of Chicago - across from the Art Institute.
To dismiss the high rent issues affecting small business in Chicago is really missing the point of this post. We are being constantly squeezed by corporate staleness. It is truely sad!
Blame the corporations...here we go again maaaaaaan.
ReplyDeleteA corporation is a legal entity. Those who own and run those corporations are ordinary people, not some evil corporate syndicate. Put down the pipe and park your Vespa for a second. Corporate activity is driven by the markets. If they are so bad, they would go out of business. We, as consumers, dictate who remains in business.
Don’t forget the marginal level of corporate ethics that have been so prominent in today’s volatile market. It is the lack of corporate ethics that has been encouraging this trend…
ReplyDeleteI don't know the Poster Plus' situation, but I have heard of many small businesses that are locality-driven that can't afford to keep up with the constantly rising rent. Something has to give here and it seems that unique retailers and restaurants are being forced to find cheaper locations while the franchises move into the vacancies. The rents in the SL are already too high to accommodate small businesses, so they sit empty.
Sometimes there's more to a story than the simple cartoon version. Over the last couple of years, three new locally owned souvenir shops have opened in the two blocks just north of Poster Plus.
ReplyDeletePoster Plus is not going out of business, by the way, but is moving to be more of a high-end gallery on an upper floor at 30 East Adams.
Don't forget, please, that in many cases building owners don't entirely get a choice. Taxes don't go down because you've decided to rent your storefront to a local business. The City of Chicago wants the same cut either way.
ReplyDeleteI think a big reason this place is moving is because they needed more space, too!
ReplyDelete