2nd Street can be expensive for not just consumers but also retailers that pay expensive leases. The ABJ is reporting that Austin Java and RunTex are working with the City of Austin to restructure their leases in order to help weather the economic storm.
From the article:
“The city said discussions with Second Street District leasing agents suggest that other retailers are also feeling the pinch of declining sales. According to the city, landlords are having to renegotiate leases and make temporary rent adjustments to help shops avoid closing down.”
Landlords, including the City of Austin, must be willing to renegotiate with retailers to avoid increasing vacancies becoming endemic to 2nd Street District. City council will discuss the issue this Thursday.
While some landlords are negotiating with tenants, they are NOT forgiving back rent OR not having tenants pay it back when they are doing better. The other downtown merchants cannot compete with these two businesses because the city is giving them unfair advantage and it sucks! I am a downtown merchant and nobody is going to modify my lease. I signed it and that’s that. I am also sick of RunTex running races every other Saturday and closing down the streets of downtown. My customers will not drive downtown and I don’t blame them. I lose precious business every time RunTex sponsors a run – I actually LOSE money.