Original post made
by CJ Vetter, Menlo Park,
on Jul 16, 2011
Has anyone besides me noticed that retail spaces in downtown Palo Alto are not-so-gradually becoming office spaces? In spite of zoning? I pondered this, because I know there is a demand because I am a retailer. The rents continue to increase in spite of vacancies. I have been driven out of two spaces by a substantial rent increase, one at the height of the recession. The spaces in both cases went vacant for over 6 months.
Then one of my landlords spilled the beans: they can get higher rents for office space than retail space. It seems to me they raise the rents, don't find renters for impressive periods of time, and then get the city to okay the space for office use. I mourn the loss of Diddems and wonder if I will face the same fate some day.