CHARLOTTE, N.C. — The cost to do business in Charlotte is getting more expensive. It's forcing some small businesses to call it quits or set up shop elsewhere. The latest casualty is the Charlotte Collective on Central Avenue in Plaza Midwood.
In an Instagram post the owners of Charlotte Collective say, "Across Charlotte, small businesses are facing rent increases that aren't sustainable for small businesses, and we are now part of that sad pattern as well."
This isn't the first business in the area to close shop. It follows several others including Soul Gastrolounge, which closed its Plaza Midwood location over the summer for the same reason.
When it comes to commercial rent, data from the National Association of Realtors shows rent went up 11% nationally from 2021 to 2022.
Russell Fergusson, member of the Plaza Midwood Merchants Association, a group that helps small businesses, said he believes there are also other factors at play when it comes to businesses leaving.
“What we’ve had, I think more than some of the other economic things, is a lot of these smaller, older buildings were owned by families and individuals, and they’re going through generational change," Fergusson said.
While the area is changing, Fergusson offers some advice for the supporters of small businesses in their area.
“If you love a place that’s been there for a long time, keep going to that place," Fergusson said. "That’s the difference."
As per Charlotte Collective, locals are sorry to see it go.
“It's something that’s really sad to see because one of the things that I personally think makes Plaza so special is those small businesses," Cameron Sechrist told WCNC Charlotte.
WCNC Charlotte spoke to the owner of Charlotte Collective Wednesday. They did not wish to make any further comments on the closure and said they plan to focus on their South End location.
Charlotte Collective is the home for a lot of local small businesses. It's a place where people sell their items and art -- many got their start at Charlotte Collective.
Shawni Ferguson and Alley Dean co-own Disco Honey in South Park. For the two, having a brick and mortar was a dream. That dream was made possible by Charlotte Collective. They sold their products separately at Charlotte Collective, gained confidence, then decided to open up a store of their own.
“I wouldn’t have had the experience, the confidence, the customers, literally everything," Dean said.
“It was truly a dream having that space," Ferguson said.
They said it's a shame to see the store close down because of how other small business owners benefited from it.
Contact Lexi Wilson at lwilson@wcnc.com and follow her on Facebook, Twitter, and Instagram.
Contact Austin Walker at awalker@wcnc.com and follow him on Facebook, Twitter, and Instagram.