Vacant retail and commercial space in downtown Chattanooga has more than doubled in the past six months as rents rose more than 10%, according to a new report.
Retail and commercial space across downtown is 5.5% vacant by square footage, with an average asking rent of $23.92 per square foot, according to the economic conditions report circulated Wednesday by River City Co.
The downtown development nonprofit began releasing the twice-annual reports last year. The first report in July showed a retail and commercial vacancy rate of 2.7% with an average asking rent of $21.64 per square foot.
Two longtime restaurants in the city center, Taco Mac and Sticky Fingers, closed in the month after the report was released last year. A third, Naked River Brewing, closed near Finley Stadium around the same time.
“The increase in available commercial square footage is due to several large spaces — Sticky Fingers, Taco Mac and Naked River Brewing — becoming available around the same time,” Emily Mack, president and CEO of River City Co., said in an email. “In a mid-sized market like ours, those three properties can have an outsized effect on the data. These properties are prime locations that we are actively pursuing businesses to fill.”