Fleetwood is a beloved local store in the Inner Richmond. Photo from Fleetwood
Supervisor Connie Chan is introducing legislation that may allow small business owners to unionize. This is a game changer for a city on the edge of a bubble.
Commercial vacancies, we can all agree, are bad. Empty storefronts are so egregious for the wellbeing of a neighborhood that the Office of Economic and Workforce Development has grants to get you in the door if you promise to open along a troubled corridor.
They probably wouldn’t use the word “troubled” because of the connotations, but how else would you describe a ghost town? When businesses leave, foot traffic dies down. But what can be done?
Most small businesses in San Francisco are renters. Commercial property (like any property) is expensive. Maintaining the property, complying with local building regulations, and affording the right property insurance makes owning the storefront you occupy unattainable for many. But there is no rent control for commercial properties.
Who doesn’t have at least one San Franpsycho shirt? Photo from San Franpsycho
That means a landlord can, at any time, jack up the rent. And it’s why a fair amount of small businesses have moved or even closed altogether. We saw it with Stuff, a dope consignment vintage store across from Black Heart and Zeitgeist. We saw it with Bob’s Donuts, whose rent was hiked 150%, a story that went sideways and became quickly politicized. And we’re going to see it happen even more as this AI bubble rapidly envelopes The City. Thankfully both Stuff and Bob’s Donuts were able to relocate, but we’ve all seen too many of our favorite places close in recent years because of rapacious landlords.
That’s why Supervisor Connie Chan’s legislation is kind of cool. She’s announcing it at the Japantown mall, a big building with lots of small local cultural businesses. The events the Japan Center merchants help put on are a big part of why it’s weathered the weird real estate climate in post-pandemic San Francisco. They were about to close, but somehow not only survived the death of malls. They rose again, like a badass zombie covered in cherry blossoms and ready to prove everyone wrong over a bowl of the best ramen in town.
There’s a problem with the Japan Center, though. They don’t own those buildings that make up the mall. You know, the aging one with pretty skylights and a bridge over Webster? It’s owned in part by an out-of-town company, Kinokuniya, who is also an anchor tenant. And then there’s 3D Investments. A few notoriously absent landlords, happy to profit off the work but very quiet when it comes to reinvesting in the aging properties.
The Japan Center Mall. © BrokenSphere / Wikimedia Commons
While rent control for commercial tenants is out of reach because of our shitty state legislators, who I hope read this and feel ashamed they’re not doing jack to help small businesses, there’s still hope. And that’s through unionization.
If a group of tenants unionizes, they can keep communication streamlined, negotiate better deals, and practice the old adage that a rising tide lifts all boats.
The tide is getting higher, folks, but not in a fun way. The speculative real estate market is BONKERS. Buildings may sell, rents will almost certainly go up, and our beloved small businesses might get priced out. And that would suck for a “city on the rise,” now, wouldn’t it?
