Dudley retail rents rising as area undergoes revitalization
By Larson, Sandra | |
Proquest LLC |
The rising tide of new commercial development around
The Dudley Municipal Center, set to open in early 2015 on the Ferdinand's site, will become the headquarters for the
These three projects alone promise some 50,000 square feet of new retail space. In addition, plans for
The surge of activity in
"You have to welcome the improvements," said Sharif Abdal- Khallaq, whose family business, A Nubian Notion, has been in
Abdal-Khallaq has no doubt rents will go up. A Nubian Notion has already downsized to survive rent increases, he said, squeezing its inventory of Afro-Centric figurines, jewelry, greeting cards and general convenience store items into a smaller space.
"Any time you make an improvement in a neighborhood you can expect the rents to go up," he said. "The rents have climbed, and they will continue to climb."
"I would say rents are definitely rising," Barnett said. "We want to lock in a long term lease. I'm concerned about whether ACE will be able to stay in
The average retail lease rate in
Rent trends and averages can be complicated to pinpoint, as rates vary widely between old rundown buildings, renovated buildings and brand new ones. In some cases nonprofits or desired "anchor" tenants were offered below-market rates long ago - and those rents sometimes jump dramatically up to market rate, Stanley said, potentially pushing a business out. Abdal-Khallaq noted that long leases may lock in base rent, but escalation clauses allow landlords to pass on to tenants increases in taxes, insurance or maintenance costs.
The Dudley Renaissance Center on
Officials have yet to announce rent figures for retail in the cityowned Dudley Municipal Center. In the Request for Proposal, potential tenants are asked to propose a rent they can pay, and potential bidders have been informed that a committee comprising city officials and Dudley community representatives will evaluate and rank potential tenant businesses on several factors, not just the highest bids.
Proposals are due
Not surprisingly, those in the retail leasing business express enthusiasm for the spate of development, though in interviews, they tend to downplay the rising rents and highlight the expected increases in street life and new customers.
"It should be a win-win situation," said
Hill declined to say existing businesses would be pushed out by higher rents, but speculated that some would respond better than others to opportunities presented by a new set of customers and greater activity during the day and into the night.
"In a free economy, the market will dictate if the nature of a business will generate enough income to support higher rent," Hill said. "If there's more foot traffic, then existing businesses should benefit. If they remain competitive and maintain their businesses, they'll benefit."
Abdal-Khallaq agrees that business success in
Barnett suggested that with so much new development, the Boston Resident Jobs Policy must be enforced so that construction dollars benefit local workers. And beyond construction jobs, she said, the development ideally will bring businesses that can provide a living wage for neighborhood residents and their families.
"I think this neighborhood deserves and needs more services and amenities," she said. "But if we're not able to figure out how to maintain the businesses and housing that support low-income folks, than this neighborhood is going to become like the
With rents likely to keep rising,
As for the overall impact of all the attention focused on
"We want new things to happen, we want a better mix of retail," she said, "but those businesses that stuck it out all those years when nobody cared about
For more information on the
The new
While no one is sure what impact new office and retail space will have on
"Any time you make an improvement in a neighborhood you can expect the rents to go up."
- Sharif Abdal-Khallaq
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