[hungrygs]

That's strange that new development wouldn't have commercial ground floor space, even more so if the torn down building had it. Everywhere in the USA that has urban gentrification strongly encourages retail on the first floor and apartments/condos on top. It's a huge attraction to residents above as well. Worse case, cities could mandate it.

[et-al]

Newer developments will have commercial spaces on the ground floor, but a problem is that rents are generally higher, so it limits the types of shops that open up there.

In San Francisco, I've talked to the owners of a few bikeshops, and they have good relationships with their landlords. The landlords are willing charge less rent because they feel the neighborhood needs certain types of shop. A commercial developer may not share these same ideals.