The many vacant storefronts – especially on Santa Cruz Avenue – are a blight on Downtown and hurt city sales tax revenues. Plus, the existence of about 16% of all retail locations discourage new businesses from coming to our city. While some vacancies can be attributed to normal retail and restaurant turnover, too many Downtown locations have lacked tenants for more many years AND are not being actively marketed by property owners. These are especially problematic.
The City needs to figure out creative new ways to reduce the number to no more than about 10%!
Current Status – April 2025
Key Points
- There are eighteen vacant retail locations on Santa Cruz Avenue and one on Crane => 16% of Downtown retail locations.
- Eight are not currently listed as available for rent.
- Three became vacant in 2025.
- Six have remained vacant for at least four years.
- The average basic lease rental rate of $4.00 to $4.50 per square foot per month discourages potential new small businesses.
City Incentives & Penalties
The City of Menlo Park neither subsidies local businesses nor penalizes building owners who accept long term vacancies.
Downtown Business Regulations
The City of Menlo Park regulates the types of businesses permitted on Santa Cruz Avenue through zoning ordinances, particularly within the Downtown/El Camino Real Specific Plan area. These regulations aim to maintain a vibrant, pedestrian-friendly downtown by encouraging active ground-floor uses. City of Menlo Park website
Permitted Ground-Floor Uses
The city prioritizes businesses that promote street-level activity and engagement. Permitted ground-floor uses typically include:
- Retail stores
- Restaurants and cafés
- Personal services (e.g., salons, fitness studios)
- Art galleries and cultural establishments
Restrictions on Certain Uses
To preserve the dynamic character of the downtown area, certain uses are restricted or require special approval:
- Office Uses: Previously, business, professional, medical, and dental offices were limited to upper floors. However, recent changes allow these offices on the ground floor, provided they do not have frontage along Santa Cruz Avenue.
- Personal Improvement Services: Services such as tutoring centers and language schools were once confined to upper floors but are now permitted on the ground floor.
- General Personal Services: Services like dry cleaners and repair shops, previously restricted to upper floors, are now allowed on the ground floor.