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Newark Launches Program To Draw Tenants to Vacant Retail Space

Garden State’s Biggest City Looks To Further Downtown Revival
The city of Newark and Invest Newark are trying to fill vacant storefronts in an area that includes part of Broad Street. (Steven Cuttler/CoStar)
The city of Newark and Invest Newark are trying to fill vacant storefronts in an area that includes part of Broad Street. (Steven Cuttler/CoStar)
CoStar News
September 7, 2023 | 9:34 P.M.

New Jersey's largest city has kicked off a financial assistance program to help attract tenants to fill vacant retail space in its downtown as part of a revitalization effort.

Newark and Invest Newark, the city's economic development corporation, this week said they launched the Newark Retail Reactivation Initiative to assist businesses and nonprofit organizations to locate in the municipality's central commercial district. The program will focus on the area bordered by Broad and Washington streets between Washington Place and William Street.

The city and Invest Newark will make low- to no-cost financial assistance available to businesses looking to move into the designated focus area. Business operators will be eligible for up to $650,000 in support, depending on the square footage of their storefront, the city said. Funds can be used for exterior and interior improvements of the vacant space, or the purchase of furniture, fixtures and equipment.

“The Newark Retail Reactivation Initiative will revitalize and accelerate the influx of entrepreneurial businesses making use of downtown vacant storefronts," Mayor Ras Baraka said in a statement. "Newark has become a magnet for entrepreneurs and small retail businesses. This program will make downtown even more attractive as a destination, a place for residents and visitors to enjoy. It is an important step in our strategy to make downtown a 24/7, exciting, walkable area where people can live, work and play.”

The new program was developed in collaboration with Bloomberg Associates, the pro bono consulting arm of Bloomberg Philanthropies, which works with cities and mayors around the world.

“Cities across the country are struggling to revitalize their downtowns," Todd Rufo, part of the economic development team at Bloomberg Associates, said in a statement. "Mayor Baraka and the city of Newark are again leading the way with a bold strategy to both fill empty storefronts and support local small businesses at the same time. This is a winning combination which other cities should look to as a model.”

The initiative is part of Newark's effort to create more jobs, enhance public safety, beautify the city, and increase the number of businesses and organizations serving Newark residents and visitors.

Invest Newark's mandate is to support small, women and minority-owned businesses, spur real estate development and undertake economic development activities to spark economic growth and create jobs.

“The many residents and visitors already eating and shopping in the heart of Newark and the growing number of people coming downtown to enjoy festivals, concerts and other outdoor events has set the stage for an initiative such as this,” Marcus Randolph, Invest Newark president and CEO, said in a statement. "It is also a great complement to Audible’s Business Attraction Program that was recently announced."

Audible, which is based in Newark and owned by e-commerce giant Amazon, on Aug. 1 announced it was debuting a new series of initiatives designed to encourage innovative businesses to join it in the city.

"Companies with founders of color or female founders are particularly encouraged to apply and can access relocation assistance, capital for new leases, and stipends for employees to live and shop locally," Audible said.

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