Numerous small businesses in Denver area are having difficulty paying their monthly rent.
The Small Businesses in Denver Struggle to Pay Rent
As reported by The Denver Post Retail, numerous small businesses in Denver area are encountering challenges in covering their monthly rent. While the job market shows low unemployment rates, ongoing uncertainty arises from considerable inflation and the potential for interest rates to rise.
This brought the small businesses in Denver to think creatively about how to manage their regular expenses. The options that they are exploring were changing operating hours, redefining business goals, raising prices, downsizing to smaller locations, reducing staff and in some cases putting into consideration the closing of their businesses.
In the past year, inflation in the Denver metropolitan area has been higher than the national average. Denver saw a 4.7% increase, while the entire country experienced a 3.3% rise. Between May 2023 and July 2023, the cost of household fuels and utilities in the Denver metropolitan area rose by 7.5%, marking the most significant two-month price surge since January 2022 to March 2022.
The Small Businesses in Denver COVID-related Challenges
The Saucy Noodle, a beloved Italian restaurant that started in 1964 permanently close its doors in August 2022. Co-owner Erin Markham mentioned to The Denver Post that the family-run establishment had difficulty affording the rent due to its new landlord, Otto Petty from Endurance Real Estate Partners, and faced an unexpected eviction.
Following two years of challenges stemming from the coronavirus pandemic, these small businesses in Denver are now confronted with the agonizing choice of shutting down due to substantial monthly rent hikes or conflicts with landlords (which often arise due to these rent increases). Alongside the persistent struggle to hire and retain skilled employees, the precarious position these businesses hold as renters has become overwhelming, leading them to decide to cease operations.