Troubles in retail land...

1. Retail tenants are having a hard time on 9th Street NW, in DC's convention center. See "Conv. center to retailers: Pay the rent or move out," from the Washington Busienss Journal. This shouldn't be a surprise. Just because the space is new doesn't mean it is worthy of high rents. This isn't a retail destination, and for many reasons, retail within these spaces isn't attractive or utilized by convention-goers.

It's not a matter of if you build it they will come. Linking big project developments to neighborhoods and to internal spaces is full of nuances. Mostly, it isn't done right. And this is but one more example.

2. The article "Retail landlords offer blue-light specials to tenants," from the Houston Business Journal discusses how marginally located shopping centers are forced to offer large build out allowances and other incentives to attract tenants. From the article:

... offering as much as $35 per square foot or more for tenant improvements. And in some cases, landlords are throwing in other deal-sweeteners such as longer build-out periods and even free rent in an effort to shore up the struggling sector. "It's a citywide problem," says English, president of Houston-based CEC Brokerage. "Landlords are getting anxious because there's too much retail on the ground and it's getting tougher to compete with the grocery-anchored centers."

3. From "Here today, gone tomorrow: Popular tourist area not always road to business riches," in the Orlando Business Journal:

What initially may look like a surefire winner for the tourist-rich street might turn into an unmitigated business disaster -- but the sale of such property might prove to be an unexpected goldmine.

I-Drive "has been a graveyard full of people who have come and gone," says Dave Poole, a tourism industry consultant and marketing expert. "Attractions come in and the owners think they'll make a million bucks -- but they're usually wrong. If the attraction is just so-so, people don't come again."

The area is becoming less a focal point for the vacationer and one more apt to be visited by the conventioneer or local -- two groups not interested in kitschy attractions or places that deserve no more than a single visit.