GLUT OF COMMERCIAL REAL ESTATE.
The many small commercial malls located throughout Santo Domingo and Santiago are suffering a glut of commercial space, caused by the
bankruptcies of many small businesses, reports Diario Libre (April 21,
2003). Unable to afford the high rents, high maintenance charges, high
power bills, and labor costs to include the new social security charges,
many businesses are being forced out of operation by the slow sales
levels. Many stores were not in possession of any particular niche in
the market, and when the small malls' foot-traffic dwindled, many
called it quits. These small malls also say they face competition from
the office towers that are ensured traffic from the people who work
there. In Plaza Andaluc?a (Abraham Lincoln and Gustavo Mej?a Ricart), 12
shops have closed in past months or have opted for a change of location.
Reportedly, monthly rents cost RD$28,000 per 83-square-meter locale.
According to the Fondo Nacional de la Vivienda Popular, in 2002 there
were 125,899 square meters of office space available and another 101,535
square meters under construction.