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The Hits Keep Coming for the Retail Sector


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The result of decades of depending too heavily on real estate, primarily office real estate to support downtown areas. Should there still be a dedicated “downtown” area, or should cities be looking at decentralization of amenities? This piece in the San Francisco Chronicle analyzes what has happened to downtown SF and how it has been accelerated by the pandemic.

https://www.sfchronicle.com/projects/2022/sfnext-downtown/

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Thats a good article and yes it's happening all over the country. It's been happening here in Chicago for years. But what you see are neighborhoods thriving like they have not in years. What's been happening here is more residential properties replacing those and the type of businesses that appeal to those residents opening up.

We have a housing shortage in these places all across the country. It's certainly not that easy to just snap your fingers and turn an office building into a residential building, but it can happen. Or that real estate can just stay vacant. Here in Chicago our entire rail transit system from the suburbs goes to the downtown area. It becomes a question - what kind of investment is needed to rethink that?

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In the Northeast, the problem has been a combination of suburban sprawl and the remnants of manufacturing having left a hollowed out center, at the same time that many Northeastern areas outside of NYC and Boston had been gradually and consistently disinvesting in public transit. Come to think of it most of NYC, especially Manhattan doesn’t really have a downtown but it has districts (Brooklyn, the largest NYC borough does have a proper downtown though), garment, meatpacking, theater, various shopping districts, etc.

In the rest of the Northeast where post-industrial degradation has taken hold, the idea of “walkable” cities where amenities are within reach has been floated around for years, with very little action being taken to achieve this. As a kid in the 1980s, whose adolescence occurred in the early 90s, I still have memories of seeing butcher shops, hardware stores and the local skating rink all accessible on foot. Now those areas are hollowed out with some small businesses being built to fill the void that has existed for two decades, mostly bars and cafes. For shopping or entertainment one needs a car that will drive to a neighboring suburb, or do what most end up doing, take a commuter train into NYC.

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Somehow this bit of news missed me. During my teens, I used to pour over their catalogs but somehow by the time they made it to my area mall, I rarely purchased their products. The journey of the company is a solemn one, even before this closing news. Seems like the brand ventured far away from its roots.

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