GOLD DUST DISAPPEARS IN A PUFF OF HOT AIR

The news that the ostensibly famous San Francisco saloon The Gold Dust Lounge is being
booted out by their landlord after 50 years near Union Square in favor of The
Limited has made headlines. Events like this underscore the juxtaposition of neighborhood culture and market opportunity, forces that often find themselves at cross purposes. Arguments on both sides have merit. But movements to have city planners or elected officials step in are simply wrong. Very wrong.

The law of the land is clear enough on private property rights. The marketplace will dictate what business goes in a given location. Miscalculations and bad judgment often intervene, but in the end, the market – which includes landlords, business tenants, and consumers – ultimately decides the future of the neighborhood. Free market forces do not always move in a straight, true line.

There is another side of this story that will be addressed in my next blog and has to do with paying close attention to lease terms. Did the landlord take advantage of the tenant’s naiveté to get them out of the space? We shall examine the facts.