South San Francisco may soon offer short-term leases on some of its city-owned storefront properties, as well as up to $10,000 in tenant improvements, as part of a pilot program aimed at reducing commercial vacancy rates and boosting small business support.
The program would cater to local stores that want to transition to a permanent brick-and-mortar location but are hesitant to take on the financial risk that generally comes with long lease terms and expensive tenant improvement work.
“Vacant storefronts are a challenge in many communities, and South San Francisco is no exception. As of Q4 2024, the citywide vacancy rate was 8.6%. When spaces sit empty they can lead to blight, attracting graffiti and vandalism,” Management Analyst Katie Donner said during the City Council meeting Feb. 12. “They also reduce foot traffic in community areas since there are fewer shops to visit, and they can create a negative perception of the local economy.”
While the final details will come back to the council for approval, the city anticipates opening up three of its own properties — two on Grand Avenue and one on El Camino Real — for a pilot program, where eligible businesses would sign a one-year lease and receive up to $10,000 for tenant improvements.
Priority would go to clients affiliated with the city’s Economic Advancement Center, which opened in 2021 and offers training, workshops and support for the area’s local businesses.
Staff took notes from other cities in the region, including San Francisco, Santa Cruz and San Jose that have all operated a similar program meant to reinvigorate their downtowns and other corridors with a strong economic presence.
“I’m hopeful that if this pilot program works, that it’s actually something that commercial landlords can learn from, because there are so many empty storefronts. They can’t get their rent, but they’re getting nothing, so if they were able to get half the rent on a short lease, it doesn’t preclude somebody coming in … to get ready to open a new business,” Councilmember Mark Addiego said.
The program would focus on retail businesses, rather than restaurants, based on the property set-up.
“This program has a lot of potential. I think it’s really well thought out, and for a lot of people who are thinking of starting small businesses, it’s a big hurdle to make that large capital investment at the very beginning and sign these long-term leases,” Councilmember James Coleman said. “I think this is a really great idea to help spur our small businesses in South City.”
Copyright for syndicated content belongs to the linked Source link
