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Comment by m463

10 days ago

Why can't retailers BUY the property, in the same way as homeowners?

Access to capital. People who want to start their own small store aren't usually sitting on the money they would need to buy urban property on top of stocking the store and potentially earning nothing for a few years before they can form any steady customer base.

There is a chicken-and-egg problem. You would need to show cash flow in your business for several years in order to get a loan to purchase a property. In the mean time, if you’re successful, your landlord has no incentive to sell but instead hold and raise rents.