Space for Lease: Who is REALLY at Fault Here?

As I drive around where I live, I noticed how many businesses are shutting their doors. Under normal circumstances, a business will leave and another will take its place. Then this week, it dawned on me than many haven't come back at all. I decided to take my digital camera out for a little spin and snap a few pictures. The pictures were taken in one of Illinois largest towns, Naperville, IL. The population is just under 150,000 people and household median income of around $100,000. There are several corporations in the area including BP, Tellabs, and energy company Nalco just to name three (not to mention companies in the neighboring cities, including only 3 that have just around 300,000-325,000 people combined). Of the places I am showing here, all of these businesses were active 3-5 years ago. How is it that so many places in towns like these are seeing this? I have a few I can point at.

First, let's look at our friends in Washington DC. Our President, who believes high taxes are the way to grow the economy. Let's look at the people in our legislative branch who think the same way. They say the economy is the priority and this is the result, I would hate to think about what is much lower on their list. To think that a Millionaire or Billionaire would want to build a business in a place like this. Sure, let's tax the rich. Go ahead, keep raising taxes and keep the tax codes a mess. Meanwhile, money that could come and build a business in the places I showed will remain on the sideline. These people can't even come up with a years budget (3 years and counting) and you expect me to think they can create a solid economic plan. Too many states (especially mine) have embraced the tax and waste mentality. Forget about all the money that's been printed as well (that is a story in itself). These pictures show what 8%-plus unemployment looks like (not to mention 15% Black unemployment, 50% teen unemployment and countless others who have quit looking for work altogether). They also represent what slow or no economic growth looks like. Not a pretty picture, right? We could make life easier on business owners so not only that they can do business, but hire some people while they're at it. That would make too much sense. Washington wants to make it hard for businesses to exist in policy. While they all do that, you'll see a lot more of this..................

and this.......................

Washington is the only ones to blame here. I blame some of these developers/landlords of these developments. Why do I do that? Work with me for a sec. In a different city nearby, I frequented a particular major chain. I noticed that two of their flagship/anchor stores had closed their doors. The place I frequented also close a while back. When I visited a different location, I spoke with a woman (I'll call "Sue") who I normally dealt with at her prior location. As she and I started to talk, she informed me of something key. When she did, I really was in disbelief. For those who aren't aware, more retail business leases average 5 years in length (give or take a year or 2). What "Sue" told me was that the landlords wanted a 10 YEAR LEASE. I know how retail works as it relates to leases. I know several small business owners (either as customers or friends) and when I told them, they were as shocked as I was. So instead of seeing these businesses filled up, people now have more uncertainty to deal with. Not only do they not know what (and how) the tax structure is going to be going forward, now you don't know how that will translate to your business. So not matter what happens, you are stuck on a lease for 10 years no matter if your business fails or outgrows a given location. Landlords, adapt on the fly. Don't be like the landlord I mentioned here. So if 10 years is the "new norm" going forward, my money is that we will see more of this.............................

and this.................................

and goodness forbid this (this particular mall is about 60% unoccupied)...........................................

So let's Occupy some space. Let the people who can make this happen do their thing. Washington- GET OUT OF THE WAY. These places are already built. Let someone come to it. Landlords, decided what is best for you- 5 year lease with potential renewal or 10 years lease and more of what you see above. As I said at the start, this is one of Chicago's more "well off" suburbs. I imagine it's worse in the city. Army & Lou's, a Chicago South Side, Black-owned restaurant/institution, celebrated its 65th birthday in 2012.

(1) However, like many other businesses, Army and Lou's closed it's doors in 2011. It had hoped to remain at least providing catering service. That dream also ended. I can't help but think that for every Army and Lou's we know of, I'm curious of how many more we don't know about. The moral of the story is simple. Bad policy hurts everyone. Now it's time for good policy. Let's start by changing our country's leadership from top to bottom. The change every really needs happens this coming November. References: 1. Picture taken from http://whenfallsthecoliseum.com, "Still Summer in Chicago" Posted on September 12th, 2010 by Jessica Alfreds.