Background on the Situation
The Center City Merchants Council of Puebla has reported that rents have surged up to 200% since 2024, with three-meter spaces now costing up to 30,000 pesos per month. This sharp increase, they claim, will deter new businesses from opening and force existing struggling ones to relocate.
Who is José Juan Ayala Vázquez?
José Juan Ayala Vázquez, the president of the council with over 1,200 members, expressed concern that escalating rents are a “silent effect” of gentrification. His aim is to attract more franchises while pushing out micro and small businesses.
Impact on Local Businesses
Ayala Vázquez highlighted that opening a store in the city center has become an increasingly difficult challenge due to high rents. He mentioned that local business owners are demanding rents ranging from 30,000 pesos for a three-meter space to 350,000 pesos for larger store floors.
He pointed out that although the occupation of stores is a matter of supply and demand, the rising costs have gone beyond proportion. This worries the central commercial sector as 90% of businesses pay rent, while the remaining 10% are property owners.
Call for Action
Ayala Vázquez urged local authorities to take steps to preserve the local business activity, as it directly impacts employment opportunities in the area. There are over 10,000 businesses in the zone, with 40% being franchises that are also expanding and occupying spaces previously held by migrating small businesses.
He clarified that the council is not against franchises but emphasized that local, independent businesses cannot compete due to the financial backing from franchise conglomerates that allow them to cover high rents and achieve profitability.
Gentrification’s Consequences
Ayala Vázquez reiterated that gentrification poses a current risk, not only expelling original residents due to the area’s escalating costs but also driving out businesses.
He noted that paying 15,000 pesos per month is still reasonable and these prices are respected for existing businesses in the central area. However, potential new tenants are being asked for 30,000 pesos per three-meter space, despite these dimensions being the same as those currently occupied by some businesses.
He concluded that gentrification must be halted to benefit both residents and businesses in the area, as it will have severe economic consequences.
Key Questions and Answers
- What is the main issue? Rents in Puebla City Center have increased by up to 200%, making it difficult for new businesses to open and forcing existing struggling ones to relocate.
- Who is José Juan Ayala Vázquez? He is the president of the Center City Merchants Council of Puebla, representing over 1,200 members.
- What is the impact on local businesses? High rents are making it challenging for local, independent businesses to compete against franchises backed by financial conglomerates.
- What is the call for action? Ayala Vázquez urges local authorities to preserve the local business activity and prevent further gentrification.
- What are the consequences of gentrification? Gentrification risks expelling original residents and businesses, leading to severe economic consequences.
