The historic Boulevard Saint-Michel on Paris's Left Bank is enduring a sharp commercial crisis, with a 18% vacancy rate. This emblematic case illustrates pressures on local shops amid high rents and speculation. Paris city hall has introduced a tax on vacant properties to address the issue.
Boulevard Saint-Michel, separating Paris's 5th and 6th arrondissements over 1.5 kilometers, was once among the city's most appealing thoroughfares. It now faces a pronounced commercial downturn, as detailed in a July 2025 flash diagnosis by the Atelier parisien d'urbanisme (Apur). The report records an 18% vacancy rate, exceeding the Paris average of 10.9%.
Nicolas Bonnet-Oulaldj, the deputy mayor in charge of commerce from the Communist Party, summarizes: “Boulevard Saint-Michel is emblematic of what is happening today in many Paris neighborhoods: a squeeze on local retail, caught between unaffordable rents, land speculation, delivery platforms, and fast fashion.”
In response, Paris city hall activated a tax on commercial vacancies for the first time in June. Aimed at encouraging owners to re-market unused spaces after two years of inactivity, it features a progressive rate. Yet, it is seen as insufficiently deterrent by left-wing groups, MoDem centrists, and moderate right-wing Horizons members. “It's mostly symbolic,” acknowledges Mr. Bonnet-Oulaldj, who wrote to all owners to initiate discussions.
This step reflects wider challenges in Paris's commercial real estate, with the Saint-Michel area highlighting ongoing strains on neighborhood businesses.