High rental rates pose considerable problems for students but may also be the major reason that many businesses in the downtown area are being forced to relocate.

Stiff competition among prospective businesses for commercial space in the State Street area has kept the demand for rental properties high and rental costs even higher. Commercial-property tenants pay their rents based on a triple-net lease, which means that they pay rent as well as property taxes and mall maintenance fees directly to the renter.

Despite double-digit increases in property taxes, renters have had no problem filling the open spaces.

“There have been many years in the past where State Street has suffered from vacancies, but right now it’s like a boom town,” said Ald. Mike Verveer, District 4. “However, as businesses come and go, it seems as though State Street is becoming a sort of food court.”

With a burger restaurant across form the Plaza and a bar and restaurant next to Club Amazon under construction, it seems as though the opening of food establishments in the downtown area is a definite trend.

JuJu and Moxie, a vintage clothing store that has been in business for the past 10 years, recently left its location at 485 West Gilman St. Vintage-clothing lovers can now take their business to Aura, L.L.C., located at 449 State St.

Ruth Nishioka, owner and vintage-clothing connoisseur, said she recognized the difficulties that independent business owners in the State Street area may have. Nishioka, who previously owned businesses in Green Bay, said the rent for commercial properties in Madison is much higher than in other areas.

“It’s like buying gold or Texas tea,” Nishioka said.

After eight years of business in Madison, McDermott Books is relocating to Tacoma, Wash., and will be out of its State Street location by April 1.

“We will be paying a third of the rent we pay here for three times as much space in Washington,” owner Pat McDermott said. “The commercial rent in Madison is ridiculous, and it’s causing State Street to become generic.”

Steve Heaps, Chocolate Shoppe owner and long-time Madison resident, said he has noticed the changing face of State Street.

“Most businesses used to own their space,” Heaps said. “Business owners began to realize they could make as much money renting their buildings with a lot less work. Rent has become so expensive that it seems as though chain businesses are the only ones who can afford to lose the money.”

Jeff Siegel of the recently opened Chin’s Asia Express said although his restaurant is affiliated with other restaurants, they do not consider themselves part of a chain.

“Chain or not, we are offering a product people want,” Siegel said. “There is a high level of authenticity on State Street, and we tried to maintain that in the construction of our restaurant. Students like variety, and we offer a variety that was in demand.”