Victress Entertainment recently relocated from 6824 NE Glisan Street, less than a year after moving into that shop from its previous storefront at 7303 SE 82nd Avenue. The adult entertainers working at that business will continue to offer a range of private shows at its new location on SE 122nd Avenue. The now vacant NE Glisan storefront has seen significant turnover, having previously hosted Tusi’s Deli Creations, PDX Nutrition, and DB Dessert Company.

DB Dessert Company’s owner moved out in 2022, investing their efforts in the company’s Alberta District location at 2624 NE Alberta Street. The two businesses that followed DB Dessert Company did not succeed, and the owners moved on to other ventures, ceasing operation. The most recent tenant was the only non-food-related business in the space for the last decade. Not long after Victress Entertainment opened in the space, the city received an “Unpermitted Change of Use” complaint. In January, the business’s owners filed permit application 26-003943 to “Legalize change of use from bakery to modeling studio, with tenant improvement with new interior walls for interview room, break room, and laundry room.” That permit is still under review, but may no longer be active, as they have vacated the space and relocated to a former massage business storefront at 3131 SE 122nd Avenue.

Although this location has experienced higher turnover than most in the area, that is not necessarily indicative of a problem storefront. In some ways, it can be a sign of a property owner who is willing to take on more risk when leasing to small businesses. Short-term commercial leases typically run for 1 to 3 years, while most property owners prefer 5- or 10-year commitments. Storefront turnover carries substantial cost beyond the lost revenue while it sits empty. Most spaces are not left in rentable condition and need to be cleared out and upgraded to make them suitable for the next venture. Owners may also offer incentives to fill the space, such as rent discounts during construction or landlord-paid upgrades.

NE Glisan Street and Montavilla in general have a sizable number of independently owned storefronts. While not always classified as affordable retail units, the older buildings with smaller, divisible spaces can naturally create cost-effective rents attractive to people looking to start a business. However, new businesses are risky for the people who start them and those who rent to them. Oregon has a higher-than-average first-year failure rate for businesses. This well-known challenge facing new Portland locations leaves some property owners wary of taking on the risk of renting to first-time commercial tenants. Larger organizations have shown an aversion to renting to an unknown first-time business operator. It takes independent building owners willing to accept uncertainty when making room for creative ideas to flourish or fail in their properties.

Shopfronts like 6824 NE Glisan Street can allow entrepreneurs to take risks. However, if people do not look to start a business in the first place, or those businesses do not receive support during a vulnerable time in operation, storefronts can attract more transient businesses that fill a void before relocating. People can watch this space and others like it opening up along NE Glisan to potentially find the next new venture.