I'm wondering what is happening to the old economic supply and demand theory, when it comes to shop rents on Oakland Avenue in Shorewood.
We're in a world wide recession and rents both for the former book store and now for Harley's are going up. So businesses are moving out. There's a restaurant for sale, down the street.
According to demand and supply theory when demand goes down and supply goes up, at least relatively, rents go down. How come, they're going up instead of down?
Is Shorewood an upside down place. When the market should be bringing land prices down and business rents should be going lower, we instead see rents going higher.
And then why are our redevelopment programs aimed at raising prices of land? Is Shorewood an upside down place?
We're even paying businesses for staying here in Shorewood. Maybe we could subsidize that restaurant too, so it would continue to operate in Shorewood? Wouldn't that be consistent with subsidizing the clothing store?
Oh! But not as many people are going to restaurants during the recession. What about downsizing restaurants? Would that help? We're downsizing clothing stores and bookstores? But downsizing won't bring in more customers.
But will raising rents bring in more customers? And when the businesses move, does that help the property owners? Don't property owners know that? Are empty store fronts better? This is an upside down place.
Did somebody repeal the law of supply and demand?
There's a sign on a CDA project on Oakland, advertising for condo sales. Is there enough demand for someone to buy a condo that isn't built yet? There must be someone hiding some place waiting for just an unbuilt condo.
There's a ???for sale??? sign for land near the river on Capitol Drive. Is there some kind of business that wants to build something there during these times?
Is this some kind of upside down place?