> We see this with all those "mixed use" buildings going up in Silicon Valley, with retail spaces on the ground floor. It's really hard to fill those retail spaces.
Yeah, I think this is because (1) Silicon Valley's housing shortage far exceeds any retail shortage; (2) such retail is often added just to encourage NIMBY city councils skeptical of new housing to acquiesce as part of a "community benefits" package, not because there's any actual market demand for retail; (3) in places like San Francisco, there are so many bureaucratic roadblocks in the way of retail such as the formula retail restrictions, discretionary review, and hostile neighborhood organizations like Calle 24 that act as gatekeepers to opening, that a lot of potential small business owners just won't bother. In a healthy market, I suspect you'd see these spaces get used more.
Yeah, I think this is because (1) Silicon Valley's housing shortage far exceeds any retail shortage; (2) such retail is often added just to encourage NIMBY city councils skeptical of new housing to acquiesce as part of a "community benefits" package, not because there's any actual market demand for retail; (3) in places like San Francisco, there are so many bureaucratic roadblocks in the way of retail such as the formula retail restrictions, discretionary review, and hostile neighborhood organizations like Calle 24 that act as gatekeepers to opening, that a lot of potential small business owners just won't bother. In a healthy market, I suspect you'd see these spaces get used more.