ABSTRACT
The single most powerful force in the shaping of the physical landscape of the Art Market is the constant quest for cheaper rents. This is because the sale of art is rarely capable of providing income adequate to pay commercial rents. If a gallery fails, almost invariably its failure can be traced back to an inability to afford its rent. The commercial Art Market is one of those industries where the firms almost never own their venues, and must pay retail rents that are the equivalents for the restaurants, cafes, shops, and services located next door. Art sales tend to not come regularly, but rather in seasonal spurts and occasional high-profit deals, but that does not help with rent which remains a relentless monthly phenomenon. In fact, choosing a retail location and balancing the need for good location with affordable rent will always be one of the most important strategic decisions a dealer can make.
