Office space and retail space share the same zoning in most cities (at least Berkeley did, while I lived there), so the problem is likely the landlords.
In Berkeley, at least, that isn't the case. Retail store fronts are zoned for retail use. For example, suppose that a start-up wanted to take over a vacant retail space, put up curtains on the front windows and door, and not offer any retail products or services to people coming in the front door. This would not be permitted. It requires a different kind of use permit. Retail use in these areas is "by right" - the use permit is essentially permanently attached to the property. An office use would require a variance - possibly requiring a public hearing (and much expense).
Berkeley does this because they want the retail corridors to be destination spaces with lots of foot traffic. Concentrating retail use like that creates a network effect: while you're downtown buying some stationary, why not get a coffee next door, pick up a book at one of the last standing independent booksellers, pop in the game store to buy a present for your nephew etc. If retail is shut out by office uses, that network effect is threatened and there is less reason to go buy stationary in the first place.
The landlords (some, at least) are saying that part of the problem is the physical structure of this retail space. A lot of the buildings are quite old. The retail spaces are "deep" -- 50' back from the front of the store, much of which was intended for use as "the back room" where inventory would be kept. Few retailers need that much space. Modern supply chains reduce needs for extensive inventory. If a retailer only needs 15' deep of space, it's hard to convince them to pay the same square footage rate for the entire 50' depth. Additionally, there is less demand for traditional retail at all because more products are bought on-line or at big-box stores elsewhere.
My proposal addresses this. It addresses the lack of demand for retail at all by encouraging cultural use like galleries and artisan shops. It addresses the "too deep" problem by allowing for offices in the back, opening up to cultural use in the front.
I think this could be a good environment for start-ups. If a number of inexpensively sublet cultural up-front spaces were active, it makes for a stimulating and attractive environment for start-up workers. Meanwhile, the semi-open offices-in-the-back would be more comfortable and interesting than a sterile office-park type office.
Comments
Office space and retail space share the same zoning in most cities (at least Berkeley did, while I lived there), so the problem is likely the landlords.
In Berkeley, at least, that isn't the case. Retail store fronts are zoned for retail use. For example, suppose that a start-up wanted to take over a vacant retail space, put up curtains on the front windows and door, and not offer any retail products or services to people coming in the front door. This would not be permitted. It requires a different kind of use permit. Retail use in these areas is "by right" - the use permit is essentially permanently attached to the property. An office use would require a variance - possibly requiring a public hearing (and much expense).
Berkeley does this because they want the retail corridors to be destination spaces with lots of foot traffic. Concentrating retail use like that creates a network effect: while you're downtown buying some stationary, why not get a coffee next door, pick up a book at one of the last standing independent booksellers, pop in the game store to buy a present for your nephew etc. If retail is shut out by office uses, that network effect is threatened and there is less reason to go buy stationary in the first place.
The landlords (some, at least) are saying that part of the problem is the physical structure of this retail space. A lot of the buildings are quite old. The retail spaces are "deep" -- 50' back from the front of the store, much of which was intended for use as "the back room" where inventory would be kept. Few retailers need that much space. Modern supply chains reduce needs for extensive inventory. If a retailer only needs 15' deep of space, it's hard to convince them to pay the same square footage rate for the entire 50' depth. Additionally, there is less demand for traditional retail at all because more products are bought on-line or at big-box stores elsewhere.
My proposal addresses this. It addresses the lack of demand for retail at all by encouraging cultural use like galleries and artisan shops. It addresses the "too deep" problem by allowing for offices in the back, opening up to cultural use in the front.
I think this could be a good environment for start-ups. If a number of inexpensively sublet cultural up-front spaces were active, it makes for a stimulating and attractive environment for start-up workers. Meanwhile, the semi-open offices-in-the-back would be more comfortable and interesting than a sterile office-park type office.