Landlord-sponsored tenant-incubation programs continue to turn out small business stars. Take for example two standalone tenants at Mall of America that opened their stores last month: student athlete apparel retailer Honor Roll Athletics and African clothing boutique House of Queens + Kings. Both retailers are graduates of the Minnesota mall’s Community Commons: a cooperative retail space supporting minority-owned businesses in the Twin Cities.

And it’s not just about growing new, independent tenants. Incorporating existing local businesses into the tenant mix is crucial, as well. To that end, Westfield Garden State Plaza in Paramus, New Jersey, partnered with the New Jersey Small Business Development Center, based within the nearby Ramapo College, to find local small businesses, especially minority- and woman-owned companies, to which it could offer move-in deals and short-term leases at market rents. The landlord’s aim is not to serve as a charity but rather to eliminate barriers that might keep tenants that can pay market rent from operating at the property.

Almost 200 small businesses expressed interest. One of the first to open through the program, bakery Chic Sugars, has operated another store in downtown Englewood, New Jersey, for 10 years. The mall’s leasing team put her in a prime kiosk spot last month, and sales have been skyrocketing. Mall owner Unibail-Rodamco-Westfield is considering expanding the program to more properties.

More on Landlords That Focus on Small and Local

10 Entrepreneurs Showcasing the Value of Brick-and-Mortar

A new lease is signed every day with a budding entrepreneur or a mom and pop graduating into a small chain. Here are just a few examples from recent months.

Jack Goshert opened multibrand sneaker retailer NWA Hype in Arkansas’ Fayetteville Mall in 2021. Now he wants to expand to a second location in downtown Bentonville.

After the Silver Lake restaurant where Emily Bielagus and Mara Herbkersman used to work shuttered, the pair took over the space in Los Angeles’ Silver Lake neighborhoos and opened a lesbian wine bar called Ruby Fruit.

Jason Patel has opened his first business at the age of 24. The Brandon, Florida, franchise location of Duck Donuts, which makes made-to-order donuts, is located in a Publix-anchored shopping center.

Local Jacksonville, Florida, pop-up veteran Alyssa Amato will open the first physical store for her online women’s apparel brand Sunhoney, featuring items made by 12 local vendors.

Fashion designer Alpha launched his first store, the 1,000-square-foot Ebere, at Westfield Montgomery in Bethesda, Maryland, to showcase his six-year-old line of men’s and women’s apparel.

Former pharmaceutical executive Maria Vraniak got her degree in fashion, launched a successful online women’s apparel business called Osprey Lane Boutique and now is opening her first permanent store, in Somerville, New Jersey, after testing pop-ups.

Mark and Monica Walters opened 1610 Hardware at the Albertsons-anchored Plaza Entrada shopping center in Santa Fe, New Mexico, absorbing a 23,000-square-foot, long-vacant former OfficeMax. The Walters, who previously have owned a hardware store in each Colorado and Illinois, now run the only hardware store on Santa Fe’s southeast, partnering with hardware retail cooperative Do It Best.

One entrepreneur is opening his third store at The Mall at Fairfield Commons in Beavercreek, Ohio. Adam Smith plans to open an anime-themed restaurant and bar called Izakaya there in the fall. His other shops at the mall: Japanese pop culture merchandise retailer Nani and licensed Pokemon dealer Original 151.

Kelly Sanders and Monica Grunick have launched three Love, Pittsburgh gift shops featuring products from the region’s makers. Now, the duo is launching a brand called Love. The brand itself is not explicitly tied to Pittsburgh, but the first Love store will open this spring on downtown Pittsburgh’s Market Square.

ICSC’s Guide for Small Businesses Going Physical

The Tally of Small Businesses Having Trouble with Rent Is Growing

The economic struggle for many small businesses has intensified significantly over the past few months, according to Alignable. Its April Small Business Rent Report showed that 39% of U.S. small business owners are behind on their rent, up from 38% in the March report and from 30% in the January report. According to the survey, 41% of retailers couldn’t cover April’s rent in full and on time and 49% of independent restaurant owners couldn’t. Much of this data is based on a poll Alignable conducted among 4,205 randomly selected small business owners from April 1 to 6.

The small business owners complained that rent hikes are hurting their ability to pay. In January, 47% of small businesses were paying more for rent than they did six months earlier. That number jumped to 51% in February, 52% in March, and finally 53% in April. Of that 53%, 12% said their rent is at least 20% higher than it was in the fourth quarter of 2022. The problem is worse for minority business owners, 48% of whom were unable to pay April rent.