Fellow Laderians,

A lot of Ladera Ranch business are closing down and others are relocating to shopping plazas with lower rents. Some of these merchants said their rents were too high, which begs the question, "Were the rents too high when they signed the leases?"

Surely no business person signs a lease with the expectation that the business would lose money at the rental rate he or she agreed to pay. It stands to reason that business people have every expectation of making a profit after paying all of their costs of doing business, including rents.

We’re going through a really tough recession and everyone is struggling, businesses and consumers alike. Spending is way down. Maybe some businesses weren’t equipped to deal with a major economic downturn. But some businesses are thriving – or at least surviving – and others are not. So what’s the difference?

The painful truth is, some businesses were destined to fail from the start for a variety of reasons: under-capitalization, poor or no business plan, unrealistic expectations of the market, and so on. Ninety percent of all small businesses fail within the first few years so, statistically speaking, the businesses in Ladera Ranch are well above average.

One business woman, who relocated her store to a mall outside Ladera where she pays a lower rent, blames the landlord for not offering her a better deal when her lease came up for renewal. But in the American free-enterprise system, assuming there’s no monopoly or price fixing, the seller is free to charge whatever price she chooses and the buyer is free to pay the price or shop elsewhere. It’s called the "Law of Supply and Demand." Since this business woman was able to find suitable rental space outside Ladera at a lower rent, she really has no issue with the landlord.

Of course, there are myriad reasons why rents differ from location to location but, most often, the rental rates are determined by, well . . . location. And Ladera Ranch is a premiere location to live and shop, albeit not necessarily for every business or every business person.

It’s true, there are a lot of vacant stores in Ladera right now, but the landlord is slowly but methodically filling these empty spaces with new businesses like Corky’s, Nutrishop, and Sports Clips, to name a few. Eventually all of the shops will be filled. The landlord continues to follow its commitment to bring in mostly privately-owned businesses – mom and pops, if you will – and that’s a good thing because we don’t have the same cookie-cutter businesses as other communities, which gives the Ladera consumers choice and variety.

This publication is a huge supporter of local businesses and the Ladera Rancho Chamber of Commerce. For one thing, we run stories about our local businesses regardless of whether or not they advertise with us.

And we have launched the free "Shop Ladera" campaign for store front and home businesses. These businesses are vital to the economic and civic well-being of our community. So before you buy that Santa toy, or jewelry for your honey, or Christmas lunch or dinner for the staff , be sure to Shop Ladera!