Scripps Ranch Marketplace Losing Business, Oh My!

Wednesday, October 1, 2008, 19:02 —by DLS
Kevin Wunderly Real Estate Group

photo: Kevin Wunderly Real Estate Group

So, I’m standing in the kitchen eating breakfast and listening to the morning news. After the typical celebrity sightings, how much the war is costing us and how hot the next few days are going to get, I hear something else ….

The news anchor is interviewing business owners at the Scripps Ranch Marketplace who are “really feeling the crunch” due to the economy.

A number of the interviewees, one who says pays almost $18,000 a month in rent, wants a break from the landlord. She said business is down 20 percent and she is having a difficult time making the rent. Another business owner said he is also looking for relief from the landlord and wants his rent lowered just until things get better … And another woman said she is embarrassed because a number of stores have already gone out of business which makes the center look really “bad,” like “there’s something wrong with it.”

Well, even though these are hard times, and I do feel sorry for business owners and not just at this center, who are having a tough time of it, I still have to make my rent on a monthly basis and pay my bills on time. Don’t you?

I’m pretty certain that if I called Visa and said I couldn’t pay my monthly statement and I wanted them to lower what I owe, they would laugh at me. Ditto for SDG&E if I were to tell them I could in no way pay my electric bill … they’d have my power turned off so quick.

I’m curious, do you feel for the business owners at Scripps and others and do you think they deserve a break on their rent?

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7 Responses to “Scripps Ranch Marketplace Losing Business, Oh My!”

  1. Jeff said on Wednesday, October 1, 2008, 20:25

    I think it’s not about “feeling for” or against anyone but a simple matter of them doing what’s best for their business.

    Ultimately they actually have the power if they’re in fact willing to close down their businesses; though there is some dependency on the structure of their rental agreements of course. The reason being, the landlord will have a tremendously hard time filling vacancies at this time without lowering the rates anyways which effectively makes it a zero-sum game for the landlord with an actual loss occurring while the unit is vacant.

    I agree with the one owner who stated that it also doesn’t help aesthetically to have closed storefronts and makes the atmosphere one that is likely to remind shoppers how glum things are and in turn make them less likely to splurge.

    To answer your question, you actually might be surprised if you tried the same tactic. Companies like SDG&E are not likely to reduce your rates but they may be willing to extend you a courtesy payment reprieve which means you can be late without incurring a penalty. More to your point though, Visa and other card issuers will often reduce your APR which, if you carry a balance, will reduce your monthly payment, if your account is in good standing and above their baseline APR for your card-type. It’s actually a good practice to set reminders to call every 6 months and ask for just that. One can state something like “I’ve been receiving a number of 0% interest balance transfer offers and I’m considering taking one, however I also really am attached to this card and your customer service so I’m hesitant. Is there any possibility of getting my APR lowered with you so I don’t need to do this?”.

  2. John V said on Thursday, October 2, 2008, 11:00

    Noone “deserves” to go through these tough times. This is a pretty ridiculous post.

  3. Jeff said on Thursday, October 2, 2008, 11:09

    On the surface yes, but I do understand how a lot of people that are struggling see other people getting “bailed out” and it’s gotta be a bit frustrating feeling like they aren’t extended that same lifeline. I understand where it’s coming from.

  4. Pauli said on Monday, October 6, 2008, 1:57

    That is what the government did. Force banks to make loans to people in a politically correct manner, forget about 20% down and the individuals ability to pay, so I guess if these tenants can’t pay, then they should be able to opt out too; oh, I forgot, these tenants are euro and not illegal, so they must abide by another standard..

  5. debbie said on Monday, October 6, 2008, 19:03

    This is where I shop. I miss the gift shopsand restaurants that have left, but I know eventually it will grow again. As more spaces become available, the landlord (owned by group out of state) will have to lower rents to bring businesses back. We may have to wait awhile though.

  6. San Diego Property Management said on Wednesday, March 11, 2009, 22:33

    I’ve lived in this area and seen these small businesses going under for many years. I wish the mom and pops would do more homework before they move in there. It’s sad to see but it continues to happen.

  7. James Curtis said on Tuesday, June 8, 2010, 2:43

    I hope it stays around. That is a nice area. We need the business.

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