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Business & Tech

Downtown Northville Rent an Issue with 'Many Variables'

Some departing downtown businesses have cited rent as an issue in their demise, yet other upscale downtown areas appear to charge similar fees.

Rent rates have been cited for the departure of some Northville businesses, while other businesses maintain that rent's not an issue.

Fees charged for some downtown Northville properties have emerged as a concern for some this year, with vacancies dotting downtown and some businesses pulling up stakes for other areas.

"Divide it by four—that's what I'm paying now," said Hass Makki, who closed his downtown bakery, Sweet 220, earlier this year to reopen at a site near Nine Mile and Middlebelt roads in Livonia.

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Rent was also cited by former business owner Teresa Berent a few months ago when she closed her Solid Grounds coffee shop in the Northville Square Center on Main Street.

"It (rent) is an issue that comes up from time to time, but it's an issue with a lot of variables," said Jody Humphries, executive director of the .

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Location, image and even a landlord's ability to work with cash-strapped tenants all play a role in how much businesses pay, according to those contacted by Northville Patch.

"We've established what is fair—fair for us and fair for our tenants—and we have a great group at Long Bath Design Gallery," said Jim Long of .

Long is not only the proprietor of his own downtown business, a Northville staple since 1949, but he is the owner of two other downtown buildings.

Some don't see rental fees as all that much of an issue.

"When you look, downtown Northville is really doing quite well, especially in relation to other communities," Downtown Development Authority director Lori Ward said.

For some business owners, it's make or break. Berent said her ideal rental fee would have been at least $10 per square foot less than the $26 per square foot she said she was paying.

Still, Northville Square managed to attract two new businesses recently: Hearts of Inspiration and the restaurant Brick's of Northville. Owners of the property declined to comment on this story.

Landlords and tenants are often tight-lipped about how much they charge or pay.

Nonetheless, a glance at some business listings shows Northville to be relatively in line with other high-end, high-volume downtowns.

According to LoopNet, a nationwide commercial property website, fees for vacant space in downtown Northville appear similar to those in such communities as Plymouth and Royal Oak.

Listings posted on one day this summer for eight properties on Main, Center, Griswold and Cady showed a range of $15.54 to $20 per square foot.

Two properties on Cady and North Center streets, close to the racetrack and outside the traditional downtown area, were less expensive, going for $11 and $13.56 per square foot, respectively.

A similar number of downtown properties in neighboring Plymouth ranged from $16 to $25 per square foot, according to descriptions listed on LoopNet.

Properties in Royal Oak, an even more bustling suburban Oakland County downtown northeast of the local area, ranged from $14 to $25.

Conversely, rent for three properties along Ford Road in Garden City, a more working-class Wayne County community, ranged from as high as $18 to as low as $5.14.

In Plymouth, a 4,120-square-foot South Main property was listed at $762,000, and a converted home on South Main was being offered to business buyers for $589,000.

Those prices, of course, are for currently vacant properties in a flooded, recession-racked market and might not necessarily reflect what those who signed long-term leases in better times might be paying.

Landlords can adjust renewal fees for long-term tenants struggling with the recession. But they don't have to.

"How willing a landlord is in working with a tenant could be important," Humphries said.

Perhaps the ultimate example is that of Dave and Julie Cole of the on Main Street.

The couple ended up buying their building from their landlord several years ago.

"We felt it was important for us to be in control of our future," Julie Cole said, adding that she's heard others complain of rental fees through the years.

She said the Coles were fortunate because their landlord was sympathetic. The fact that their landlord was an older woman who had lived in the area likely played a role in her decision to sell, Cole said. An outside landlord or property development company from another state might have preferred to hang on to the building, she noted.

Businesses succeed or fail for a variety of reasons, and not every business is a good fit for its location.

Makki said he loved Northville's small-town flavor and upscale image, but he acknowledged that the high expectations of upscale customers might not be for everyone.

"I had someone come in and ask me for my credentials," he said. "That took me a little aback."

Still, business operators who are able to own their own buildings have one less variable to worry about.

"We're grateful that we're in complete control of our business lives," Cole said. "We wanted to be here not only for ourselves but for our three children."

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