News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
Keeping a shop or a restaurant going in Sisters has always been a challenge, never more so than over the past five years. The pitfalls of a weak economy have put a strain not only on business owners, but on the owners of commercial properties where businesses battle to stay viable.
"I see a real tough market out there," said Brad Miller, who owns commercial property at the east end of Hood Avenue.
That tough market is evident to anyone who tours the streets of Sisters; there are many empty storefronts, although new businesses do continue to come in.
According to Sisters Economic Development Director Patty Cordoni, the majority of landlords are willing to work to keep tenants in buildings.
Cordoni has been heavily engaged in landlord-tenant relationships, trying to find ways to keep businesses going and storefronts from emptying out.
"I know we have landlords who are working with their tenants to keep them in their places," she told The Nugget. "Of course they don't want to see people leave. Some landlords will delay payment, some will reduce payments in the winter."
She has seen landlords defer rents for new businesses to let them get on their feet.
Miller said landlords have to be willing to work to keep their existing tenants going. That can mean reducing rents and, in Miller's case, "I've had to do a lot of little things to keep tenants happy."
He emphasized that, "to keep people in the building is more important than to get a high price."
Not all landlords are willing to be flexible on rent, Miller allows.
"I see other landlords out there who will not reduce rents no matter what," he said.
There has been some talk in Sisters that the city government ought to somehow step in to provide relief. That is not a realistic option, given that municipal governments have to act based on policy, not individual cases, and the city is not in a position to offer rent subsidies.
Miller has 95 percent occupancy in one building and 35 percent in another.
Filling the empty space is the challenge. He says there are not a lot of people looking for space right now.
"Some of the stuff in Sisters, I don't care if you give it away for 25 cents a square foot, there's nobody there."
Jack Addison, who owns the building that houses the Deschutes County Sheriff's Substation, has been trying to rent a space he considers "a super location" for a long time, even cold-calling business he thinks would be a good fit.
"I've made offers to two health care people who are actually in need of a place and I haven't been able to get them to move on it," he said. "I'm willing to give it away free for a year - they just pay utilities."
Addison said he's most interested in finding a long-term tenant that will be "good for Sisters" and compatible with the veterinary clinic that shares the building.
Long-term relationships are hard to come by.
"One thing I've learned in the past couple of years," said Miller, "is that long-term leases are pretty much out the door."
That's partly self-protection for the landlord.
"If this thing turns around, I don't want to be locked in to a low-rate lease for five years," he said.
An often-overlooked fact of business life in Sisters is that there has always been substantial turnover in retail businesses. It's just that, prior to the Great Recession, new businesses rapidly took the place of those that faded away.
That's not happening nearly so quickly now.
Cordoni spends part of her time as economic development director trying to remedy that.
"We definitely try to find someone to replace what specific business has left," she said.
That's a tougher hill to climb than it used to be. Banks are scrutinizing loan candidates closely, and a solid business plan and financial backing are often lacking in people who have a great idea for a Sisters business.
Cordoni recommends that those interested in launching a business in Sisters take advantage of education through Central Oregon Community College or the Small Business Administration to strengthen their business background before taking the plunge.
A solid plan is important to landlords, too.
"Many landlords want to see what (prospective tenants') financial backing is before they'll lease to them," Cordoni noted.
While landlords are not likely to advertise their flexibility, Cordoni recommends that prospective businesses make inquiries, as many landlords are negotiating.
Addison and Miller both say they're interested in nurturing relationships.
"All they have to do is work with me," Addison said. "I tell them all, 'I will grow with your business.'"
Miller notes that Sisters is being buffeted by economic storms that are global in scale. Businesses here continue to hang on and hope for a recovery, one that Miller deems essential to the nation's economic health.
As he sees it, "small businesses make the world go round."
Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.
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