Some business owners in Calgary’s Chinatown are feeling the pinch and recent commercial rent hikes are being blamed for closures in the area.
The owners of Uzu Taiyaki, an ice cream shop located on 2 Avenue S.W., will be closing their doors later in November after their bills rose by about $500 this month.
Tommy Mac, one of the owners, said he and his wife will be pivoting to their food truck business instead.
In a social media post published last week, Mac said the decision was made after not being able to reach an agreement with his landlord.
“I actually own three units in the area, and my landlord hiked them by around 20 per cent. This was around a month ago now, and he told me it’s because of his operational costs,” Mac told 770 CHQR.
“I don’t blame the landlord for upping the rent. He has to do what he has to do — but at the same time, it’s not worth it for the price and the size that we have.”
Mac also said inflation is eating into his revenue. Not only did his rent increase, but his operational costs are up.
Uzu Taiyaki isn’t the only store that is struggling to stay open amidst hefty rent hikes, Mac said. A lot of businesses are afraid of increasing their prices because a lot of Calgarians think services in Chinatown should be “affordable.”
“We’re making enough to pay for everything but would not make any money… I know Chinatown very well. Everyone’s the same,” the business owner said.
“Some of the rent down there is ridiculous — these businesses will not survive. Within the next year, there will be a handful of businesses that will leave. We kind of talk to each other about it.”
But landlords in the area said they are also struggling.
Peter Chu, a property manager for Condo Base Management Inc., said inflation and rising operational costs are only one of the reasons why commercial landlords are raising rents.
In an interview with 770 CHQR, Chu said the market plays a role.
“It’s demand and supply — so many people are looking to move. A landlord will see that his property will rent out easily, so why wouldn’t he raise prices?” Chu said.
“The landlords bought a property. The landlords have a mortgage, and those are going up. Property taxes are going up — why wouldn’t the landlord raise the prices?”
Ward 7 Coun. Terry Wong sympathizes with the business owners but said most of the factors are out of the city’s control.
Wong has been hearing complaints all the time at city council. He said the city’s Chinatown redevelopment plan will help bring more traffic to the area and will also help address issues such as safety.
“City taxes are obviously one of the concerns, and obviously inflation and the costs of goods and the services… But these are things that’s not within their control,” Terry said.
“We have a business advisory task force that has reached out to a number of small businesses across Calgary with different ways that we can support them through promotion or by cutting some red tape.”
Brian Wong, executive director of the Chinatown BIA, urged landlords and tenants to work together to find a solution.
He said the BIA has resources to help but the organization doesn’t want to get in between tenants and landlord relations just yet.
“We want businesses to be sustainable. Can they negotiate with the landlords in good faith? Can they come to a common ground and a good solution?” Brian said.
“Many mom-and-pop shops own their buildings and they own the spaces, which give them some control.”
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