WALNUTCREEK, CA—Asretail rates in suburban downtowns become more expensive, valuableshowcase space used as storage is being reconsidered.As a result,retailers are renting space in storagefacilities. Also, some upscale cities are becoming open to havingpublic storage units closer to downtowns, whereas in the past, thisuse was relocated to the outer city limits. In thesesituations, some ofthese buildings are upgrading the facades of buildings and evenputting retail uses on the ground floor, GlobeSt.com learns inthis exclusivewithTranswesternandRutan& Tucker experts.

“Inthose hot downtowns, $70 NNN high rentals don't allow space forback-end/just in time storage,” EdwardDel Beccaro, seniormanaging director of Transwestern, tells GlobeSt.com. “With anincrease of retail in suburban/urban nodes, it makes sense toincrease storage there. Most cities don't want to waste valuablespace but they are re-evaluating uses to create or free up salestax-generating showroom space.”