Though the managers behind ReThreads don’t foresee any problems integrating their business into the East Lansing economy, many business owners have found difficulty keeping their doors open.

In 2010, 11 businesses — two of them less than a year old — closed their doors. Nine new businesses moved into the vacant spaces in East Lansing, but each month more businesses fall victim to a slumping economy.

East Lansing’s Planning and Community Development Director Tim Dempsey said the total amount of vacant space in the city typically is low because of high demand on downtown spaces, but many businesses suffer from loss of student business in the summer and are affected negatively — in some cases to the point of closure.

“One of the challenges we do have is we want to balance the seasonality,” Dempsey said. “We want to see some of that (student) activity replaced by permanent residents.”

Downtown difficulties
Businesses closed in the area have shut their doors for various reasons.

Laura Hall, owner of the now-online only Agog Arts, formerly at 225 E. Grand River Ave., said she closed her business because of economic pressure and a new addition to her family.

“The main reason (was) the economical situation,” Hall said in a previous interview after her store closed in December 2010. “Most businesses don’t make it past the first year ­— at least (Agog Arts) made it three.”

Other businesses, such as FRAG Center, formerly at 543 E. Grand River Ave. and the new location of ReThreads Clothing, closed because of declining profit margin.

Economics professor Ronald Fisher said to be successful, small, local businesses have to serve the niche in the local community with their product.

“Some (businesses) make it, some of them don’t ­— it comes down to (how) they attract customers,” Fisher said. “This is always true, whether the economy is strong or weak.”

Gilbert, general manager of ReThreads, said the company considered a few different locations in East Lansing and another location in Columbus, Ohio, before deciding upon 543 E. Grand River Ave. because of its close proximity to campus.

“That strip in East Lansing has a really good vibe to it, and lends itself well to what our customer demographic is. Everything just fell into place,” Gilbert said. “I’m really looking forward to getting this store open.”

Businesses catering to MSU students typically have fared better in downtown East Lansing, especially in the past 30 years, Fisher said.

“Businesses that serve the student population have a niche in East Lansing,” Fisher said.

Changing East Lansing
Though many businesses have closed in East Lansing and left vacant spaces in their wake, mixed-use development still is a priority in the downtown community, city officials said.

Dempsey said much of the new development in the city is meant to draw new business — for students and permanent residents — and offer a wider amenity of options for potential buyers.

“There may be space available in the downtown, but it may not reach the criteria or it may not be the right size (for prospective businesses),” Dempsey said.

The city also is making it a priority to create new spaces catering to the daytime, office-user market, said Lori Mullins, community and economic development administrator for East Lansing.

“It helps diversify our customer base — that helps to strengthen the variety of businesses; helps make it more appealing to the customers and businesses that are already here,” Mullins said.

Diversity among commercial space potentially would boost the local economy, said Douglas Cron, managing partner of Cron Management.

Cron Management currently is in the process of building a mixed-use development on the corner of Albert Avenue and Grove Street, which would have residential and business space.

“I think it would be a nice mix if you could get good businesses in there,” Cron said. “The town isn’t just students.”

Headed north
Other businesses have decided to leave the downtown area for locations on the outskirts of the city, such as Chandler Mall, or have chosen to rent space there as opposed to a downtown location. Lou & Harry’s Grill and Bar, formerly located at 245 Ann St., gave up its downtown location for a spot at 16800 Chandler Road.

Anytime Fitness, a 24-hour gym, plans to open in a few weeks in the space next to the new Lou & Harry’s.

Nick Parisian, co-manager of Anytime Fitness, and his business partner and fiancée, Trista Winegar, hope the location is just the thing their business needs to gain success.

Parisian said they chose a space in Chandler Mall mainly because of the easily accessible, free parking lot and convenience the space would provide for potential customers.

“The basis of the gym is just conveniences — we want to offer (gym members) the essentials,” he said. “Parking is key, and I think that location is going to be great for that.”

Winegar said Chandler Mall also appealed to them because bus stops might encourage students who don’t live in the nearby apartments to come and exercise at the gym.

“The bus stops are right along our path to our gym,” she said. “It’s just a nice, convenient location.”
Businesses that are far away from MSU’s campus might miss out on a lot of student business, no-preference freshman Amanda Ubber said.

“I think a lot of people get out to Grand River more than they get out to Chandlers,” Ubber said. “I think it’s nicer in East Lansing.”

Many students who live near the area disagree. Nursing senior Jennifer Finnigan, who has lived in Chandler Crossings for two years, said she utilizes a few businesses in Chandler Mall and thinks the area would benefit from more new business activity.

“There isn’t a whole lot out here — I feel like maybe if (the area) developed more, more people would want to live out here,” Finnigan said.

Staff writer Kara Leslie contributed to this report.