Some downtown commercial areas have declined in value over the past few decades because of the complexity of factors. Overbuilt commercial areas, increasing competition from shopping malls and resistance to change have all played a role in the downtown's economic decay.
Importance of Revitalization
Reversing this decay and establishing a direction for the downtown's economic growth is central to the revitalization process and is the ultimate measure of a Main Street program's success. Downtown's economic value is based on its commercial activity and its real estate factors that are integrally related.
Value of Commercial Buildings
Although traditional commercial buildings often represent a degree of artisanship that would be prohibitively expensive to reproduce today, the real value of downtown buildings depends on their ability to support commercial activity. For real estate to increase in value, rents must go up. For rents to go up, economic activity must increase.