Becoming another 23rd Ave?
Will Hawthorne's high cost spoil its flavor?
Thursday, April 03, 2008
Rebecca Koffman
The Oregonian
A flurry of business moves is reshaping Southeast Hawthorne Boulevard, and some say locally owned stores are being priced out.
Some businesses on the trendy shopping and dining street are thriving, but others have closed, moved to cheaper or smaller spaces, or teamed up with other vendors.
"Landlords are raising rents too high for local, independent businesses," says Blackie Partridge, co-owner of Home Ec, a housewares store at 3327 S.E. Hawthorne Blvd.
When his lease ended at the end of March, he says, his rent was going to jump from $1,500 to $2,600 a month. So after eight years on Hawthorne, he closed. His neighbor in the building, Bamboo Lifestyles, closed months ago.
"What building owners don't get," Partridge says, "is that Hawthorne is Hawthorne because of little businesses like us."
Michael Parrott, owner of Blue Butterfly Imports, moved to upper Hawthorne in November 2006 after 18 years in a prime spot at 37th Avenue now occupied by Peet's Coffee & Tea.
"The rent became ridiculous," Parrott says. But there's not as much foot traffic at his new location, near 41st Avenue. "We're dying up here in the dead zone."
At a strip mall near 41st with new owners, only one of five tenants is staying: Papa Murphy's Pizza. Meanwhile, Cat's Meow at 3538 S.E. Hawthorne Blvd. is remodeling and making room for two new vendors. And the Naked City clothing boutique has shrunk from two storefronts to one, at 3730 S.E. Hawthorne Blvd.
Big vacancies sit at 4026 S.E. Hawthorne Blvd., the site of the Daily Grind health-food and grocerystore; and at 3746 S.E. Hawthorne Blvd., the site of Nick's Famous Coney Island. Both were longtime landmarks, though the Daily Grind went under late last year because of declining sales while the owner of Nick's, Frank Nudo, happily sold his building this year and retired.
Karin Edwards, president of the Hawthorne Boulevard Business Association, agrees that high rents are a problem.
"We really don't want to become a victim of our own success," she says, adding that the association "would like to see rents rise slowly enough that businesses can keep up and not have to leave their locations."
Though emerging businesses used to be common, now they have to start on upper Hawthorne or somewhere else, she says. "These days, it is difficult to get a rental on central Hawthorne without an established business and a solid business plan."
Not all is bleak on the boulevard, though. Cup & Saucer Cafe, another Hawthorne institution, is expanding into a second storefront. Owner Karen Harding plans live music, expanded dinner service and local draft beer.
"I did really well 20 years ago, and I'm doing well now," she says.
Not all business failures have to do with rent, either, Harding says. "Sometimes they're not friendly, not smart, not trying to give people what they want. There's no one there who is really loving up the business."
Jackpot Records owner Isaac Slusarenko is thrilled with his bigger space next door to Cup & Saucer. He left a longtime space next to Nick's Famous Coney Island after rejecting a contract offered by the building's new owners.
Across the street, Bowers Bakery & Deli has been on Hawthorne for 23 years -- "since the days when it was the Wild West out here," says owner Dave Bowers. Bowers plans to sell or close by April 30 -- but not because of high rents. He's moving to Bend.
Carla Mink recently moved her boutique, Mink, from a tiny storefront on upper Hawthorne to a spot near 34th Avenue -- doubling her retail space and her rent. "It's totally worth it," she says. "We're doing great here."
Former employee Elsa Edens will open a store in Mink's old space, selling German and Scandinavian dishware. Edens is naming her first business for her grandparents: Elsa and Sam.
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