Understanding Urban Retail Vacancy

Abstract

Storefront retail is highly valued because of its contribution to street life, its pedestrian-oriented urban design quality, and its ability to foster social connection. Despite this valuation, in many areas, main street retail struggles and storefront vacancies are common. To better understand retail vacancy causes, effects, and mitigation, we conducted 18 in-depth (in-person or phone) interviews of the leaders of business organizations in Chicago. From the literature, common explanations for retail vacancy include structural transformation of the retail industry, demographic change, and the increased cost of being a retailer. Responses from our interviewees cited demographic change, urban context, and property owner behavior as the main reasons for retail vacancy. While there was significant overlap with the literature concerning the role of demographic change, our respondents put particular emphasis on contexts and behaviors witnessed at the “street level,” such as property owner behavior.