Good Policy | Combating Vacant Storefronts With Affordable Leases – Commercial Vacancy Tax

In this “Good Policy” video, we take a look at one symptom of the affordability crisis – commercial vacancies — and dive into an effective solution that helps level the playing field for small businesses by making affordability (not speculation) central to their storefront success. The Commercial Vacancy Tax (CVT) has already helped stabilize local business districts in San Francisco and beyond. It was designed with a simple idea: incentivize landlords to keep storefronts active through affordable lease terms.

SF small business owner, Christin Evans, gives a straightforward explanation on how the tax works, the benefits it has created for small business owners, and why it earned broad constituent support across political lines. We also take a clear look at the challenges that remain, including lingering structural issues in the commercial rental market and funding barriers to local entrepreneurs. These are the policy areas that still need attention if we want thriving, resilient neighborhood business corridors.