AUSTIN (KXAN) – New data shows Texas ranks second only to New York when it comes to small business rent delinquencies, according to Alignable research.
Alignable claims to be the largest online referral network for small businesses.
45% of Texas businesses surveyed said they were behind on rent in December. This is his 2% increase from November and 22% increase from last December.
In New York, 55% of businesses surveyed say they are in arrears.
Alignable said it was not just rising rents, but other economic pressures weighing on these businesses, including higher-than-usual inflation and lower consumer spending.
According to Alignable, restaurants topped the list of rent arrears with 52% of owners who failed to pay their rent in full on time in December, up 10% from November. By comparison, the rent arrears rate in December 2021 was 35% for him.
A spokeswoman for Texas Restaurant Association’s Kelsey Erickson Streufert said there is another factor that makes restaurants in Austin particularly difficult. According to the Texas Real Estate Research Center at Texas A&M University,
“This was a much higher rate of growth when looking at the four major cities of DFW, San Antonio and Houston,” Streufert said.
She said that commercial real estate construction has declined during the pandemic, but people are still moving here.
“We are in a tight spot in terms of construction and commercial real estate availability, which is driving up costs again,” she explained.
She said restaurants in Austin are taking a turn, simplifying menus or possibly shortening hours.
“We will see more ghost kitchens, more delivery concepts, more catering concepts, which are a little less dependent on commercial leased space. We are also seeing shared kitchen spaces,” explains Streufert.
Hear on KXAN News at 9:00 and 10:00 pm about how local restaurants are adjusting their economic costs and how it’s affecting their customers.
https://www.kxan.com/news/texas/austins-retail-rent-increases-more-than-8-texas-restaurants-struggle-to-pay-rent-survey-says/ Texas restaurants struggling to pay rent, study finds