A substantial rent increase and the poor economy have prompted a creative business cohabitation arrangement between Rising Stars Children’s Store and Metropolis. Both businesses hope it will help them weather the recession.
Rising Stars is moving into the north third of Metropolis’ space at 7321 Greenwood Ave. N., and hopes to open at the end of the month, according to owner Elonna Lester. Lester started looking for a new space after the building her business is in at 7404 Greenwood Ave. N. was sold and the new owners asked for a 30 percent rent increase.
At the same time, Metropolis owner Terry Heiman was looking for someone to take over some of his space to help him weather the economic downturn.
“We’re excited and think that customers will be too. They’ll have access to two great shops in one open, friendly space. We look forward to joining forces with Metropolis and staying in the neighborhood,” Lester said.
“We are joining forces to get through this economy,” Heiman echoed. Each store will have its own front door, but shoppers will be able to cross between the two stores inside the building.
Heiman said sales have been a struggle since last year. “Our overhead is greater than our sales. You’ve got to be creative during this environment. Hopefully when things improve, we can spread our wings a little more.”
“I think we’re in good company with Rising Stars, they’ve been here 17 years and we’ve been here 28 years,” Heiman said.
[Rising Stars photo credit: Elonna Lester]
17 responses so far ↓
1 bilsemon // Oct 3, 2009 at 4:40 pm
Nice going new Rising Stars building owner. Push out an established merchant and hope you can get someone in there to pay the 30% rent increase. If you had to raise rents, how about a small number in this recession. I hope the space sits empty for months to pay you back for your greed.
Good luck rising stars. I will come in and buy something as soon as you move in.
2 Trix // Oct 3, 2009 at 5:41 pm
Yeah, I balked at that too bilsemon. A 30% rent increase? In this economy? Good luck with that.
And with considerably less sarcasm, good luck to Rising Stars and Metropolis. I love Metropolis and hope this move helps them both keep their doors open.
3 Kelly // Oct 3, 2009 at 5:46 pm
So smart to team up! I’m happy for you both and can’t wait to visit two of my favorite shops in one stop.
4 js // Oct 3, 2009 at 6:53 pm
good luck Terry.
5 trixiloo // Oct 3, 2009 at 7:24 pm
What is up with the landlords on Phinney? Are they completely out of touch with reality and have they no compassion for small business owners during a rough economy? Wow, I am getting sick of watching all the businesses in the ‘hood have to flee, close down, or move locations…
And good for you, Rising Stars & Metropolis, for coming up with a creative solution! Since I regularly shop at both, I’ll definitely be in to see the new set-up. Good luck with the move!
6 rachel // Oct 3, 2009 at 9:01 pm
Terry always has my business. He’s a real trouper and I’m glad the businesses are teaming up. Thank goodness the owner on that side of the street isn’t a jerk (knock on wood) like a lot of the others seem to be.
Good luck, Rising Metropolis.
7 sea lemon // Oct 3, 2009 at 10:20 pm
I’m looking forward to doing my Christmas shopping at Metropolis, I go there every year to get my cards and gifts.
Shop local and keep our small businesses alive!
8 blue // Oct 3, 2009 at 11:02 pm
I agree–I hope that space sits vacant even though I don’t like seeing empty storefronts. That level of greed deserves it. Love Rising Stars and Metropolis, I will be sure to go buy something from both this week.
9 shopdog // Oct 4, 2009 at 9:32 am
A great combination for the ‘hood! The cross-merchandising possibilities are endless!
Why don’t those of us with kids and grandkids re-teach them the value of a REAL thank-you note in the form of a written card sent by snail mail (unreal thank-yous being emails, texts and phone messages), and go to Metropolis to get those cards?
10 Kate Martin // Oct 4, 2009 at 4:07 pm
The rents in the commercial spaces are completely out of whack. The configurations aren’t much to write home about either in the case of the new buildings. There we will be neighborhoods full of nothing commercially (us) or nothing but expensive restaurants & expensive boutiques (Queen Anne) if things don’t get in line. Prices are down to $35 / sf? Who can afford that kind of overhead? This teaming up idea is excellent. I’ve seen it in a few places – Johnson & Johnson Antiques certainly did a great job dividing their space and Antique Lighting also did a nice job with partitioning off the wine store area. What a great concept – make them partitionable from the get go would be good in the new buildings. Also even flexible enough to be either commercial or residential might be a good idea. Rates should be going down, not up so these stores finding their ways to make rent go down makes alot of sense perhaps even during good times. http://seattletimes.nwsource.com/html/businesstechnology/2008958203_cushman01.html In the new buildings the developers make their money on the condos and hope for the best with the commercial spaces. Obviously no incentive to lease them, when vacant still works for their proforma. For the older buildings, they are underdeveloped in relation to the zoning so even though there’s viable businesses in them, they have no security and those properties are changing hands – sometimes to people who didn’t check out the supply and demand influence on lease rates or the vacancy rate in general in Seattle for commercial spaces which is pretty high. Even Bellevue Square is making deals with tenants to stay occupied. What you don’t want is vacancies. That hurts all businesses by setting a bad vibe. McDonalds will probably be vacant for 10 years as the likelihood that Greenwood Shopping Center will move on that phase anytime soon is unlikely. The prices on the apartments and the commercial spaces are too high in The Sedges. That is a shame. They have some incentive zoning in some places in Europe to make the ground floor affordable for commerical tenants to keep the neighborhoods walkable and convenient and full of a variety of stores with stuff people need, food they want to eat, and places they want to go to. The make vacancy very unlikely with that set up.
11 aballardparent // Oct 5, 2009 at 6:49 am
While it seem unwise to raise the rent, I think it is important to keep in mind that the landlord is also a business owner and he/she needs to cover their costs. Keep in mind he/she just purchased the building and the mortgage is likely much higher than previous owner who had it for years.
I don’t think it is necessarily fair to call them greedy any more than any other business owner who would like to be compensated for the work they put into the business.
I know it is tough for small businesses today and I wish Rising Stars and Metropolis well. I admire their creativity. Most importantly if you want them to survive, shop there!
12 Trix // Oct 5, 2009 at 5:14 pm
I get your point, but the landlord will have more trouble covering costs with a vacant storefront.
And 30% is greedy, IMO.
13 Whopper // Oct 5, 2009 at 5:41 pm
“30% is greedy, IMO.”
It’s always ‘greedy’ when it’s someone else’s property and money. When it’s yours, it’s ‘hard earned’.
14 aballardparent // Oct 5, 2009 at 8:09 pm
Maybe it was the previous owner who was greedy by selling it for so much that the new owner had to raise the rent 30%.?
Not having any idea what the rent was it really seems unfair to call the new owner names.
15 Trix // Oct 5, 2009 at 10:18 pm
Assuming the new owner knew the price when he/she bought it. Still say greedy. Just an opinion from a renter.
16 artman51 // Oct 6, 2009 at 8:01 am
Aren’t there a lot of empty store fronts in Ballard generating no income for the property owners?
17 Trix // Oct 6, 2009 at 11:36 am
Too right, artman51. New ownership raises rents, it happens all the time. But when people aren’t spending money as they used to you get a lot of empty storefronts.
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