CHARLOTTE, N.C. — It's becoming more and more expensive to run a business in Charlotte, largely due to the rising rent rates in neighborhoods all across the city. CoStar reports overall retail rents are up about 10% annually in the Queen City since last year, compared to 4.4% nationally.
Those rising rents have forced many businesses to close or relocate.
Soul Gastrolounge in Plaza Midwood closed in July citing rising food, labor, and rent costs making it impossible to continue.
Central Coffee Company's South End location also announced its closure in May after the owners say their landlord raised their rent by 40%.
Now the latest business to reportedly face a rent hike is Blue Blaze Brewing in West Charlotte. Management told the Charlotte Observer their landlord, Atlanta-based Portman Holdings, has proposed a rent increase of 376%.
Commercial real estate experts at Kirk Palmer & Thigpen said the rising rent is all tied to the market rates.
"What you’re seeing is people who maybe got what they thought was a good deal five or 10 years ago are now seeing when these renewal periods coming around and landlords are looking at the bigger picture," Kirk Palmer & Thigpen partner Keith Nichols said. "Can I get a better tenant in here? Can I get a tenant to pay a higher rate given the market conditions?”
Experts say you also have to take into account there is less construction of new retail space in the last 14 years, leading to more competition -- and negotiations may not always work in the renter's favor.
“What you have to think about is would you do any better someplace else with the increase you have?" Nichols said.
Blue Blaze Brewing declined to comment further at this point. WCNC Charlotte is waiting to receive a response from Portman Holdings.
Contact Briana Harper at bharper@wcnc.com and follow her on Facebook, Twitter and Instagram.