New Businesses Drop Vacancy Rate to Lowest in 3 Years

Even after the Christmas trees are removed from the vacant downtown store fronts, they may be filled with other décor: businesses.

The vacancy rate has dropped to 19.5 percent, the lowest it has been in three years. The rate reached a peak in July 2010 when it was nearly 30 percent, according to Downtown Business Development Specialist Edesa Bitbadal.

“You may not see the difference immediately because leases are being signed,” Bitbadal said.

Pier 1 Imports will move into Sequoia Station and occupy 10,000 square feet of space. It is now in the process of receiving a permit from the City. A Mexican restaurant will fill the space at Broadway and Theatre Way, while Club Blah! has filled up the lot on Broadway.

She added that the State’s ABC license for alcohol has been causing delays for new restaurants.  San Mateo County’s ABC licenses are processed with license applications from San Francisco as well, causing a five to six month process. If San Mateo County licenses had been grouped with Santa Clara County businesses, the wait time would be 45 days, Bitbadal said.

The City installed over 9,000 strands of LED Twinkle lights or equivalent of half million lights in the downtown.  They can also be seen on trees up and down Broadway Street and Main Street to get residents in the holiday spirit. In a private –public partnership, the Downtown Business Group will be in charge of maintenance of the twinkle lights.