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Santa Monica's trendy Montana Avenue feels the heat of recession -
increasing vacancy rates of retail establishments in Santa Monica, California - Special Report: Quarterly Real Estate


    Landlords along a 10-block stretch of Santa Monica's Montana Avenue, home to retailers who cater to an upscale clientele, are watching vacancies rise as the recession drives their tenants out of business.

So far, building owners have lowered retailers' rents 10 to 15 percent but some tenants want more -- not only more cuts, but more help.

"These people (retailers) need customers coming in and spending money. The landlords need to face reality. They can't keep sticking it to the tenants by not providing money to advertise the area or their buildings soon will be empty," said Lou Muench. He is the chairman of the Montana Avenue Merchants Association and owns Fathers Office, a bar/restaurant on Montana Avenue.

Santa Monica residents who own the $750,000 to $2 million homes north of Montana Avenue provide the core market. Indeed, many of them work there.

Many of the buildings have two floors. Second floors are popular with artists and tenants who want offices within walking distance of their homes, say leasing agents.

However, amid a grueling recession, many shoppers who can't afford to live on the Westside but like to shop there have quit coming into Montana Avenue's shops, Muench said.


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