Unlocking micro-spaces and micro-businesses

Asian cities will often have buildings that look something like this:

In this particular case -- Tokyo -- the building type is referred to as zakkyo. And apparently, it is something that emerged over time:

Another is the city’s iconic multistory zakkyo buildings covered in neon signs, like those lining the famous Yasukuni Avenue, which house a spectacular variety of businesses. Zakkyo largely started out as office buildings and transformed over time to house everything from mahjong parlors to karaoke boxes. Almazán and McReynolds point out that these buildings offer a density of destinations rarely found in the West because they offer a vertical—not just a horizontal— dimension to walkability, with elevators that open onto the street and take customers directly up to businesses. Zakkyo are on narrow lots that pull pedestrians along the streets that they line. Unlike larger U.S. office buildings, their small lot sizes also facilitate the easy reuse of zakkyo space for different purposes.

Okay, so small lot sizes seem to help. But what else is needed? Is there a world where this is possible anywhere in the West? It's probably hard to imagine. Conventional real estate wisdom would tell you that multi-storey retail buildings don't work.

But they work in Tokyo, and probably for two reasons. The first is density. Tokyo is dense and I am told that zakkyo buildings tend to emerge around train stations, where foot traffic is high and people are generally looking for things to do and/or consume.

The second has to do with rules. Tokyo has an overall policy framework that allows for micro-spaces and micro-businesses. Said oppositely, Tokyo hasn't erected so many barriers that the only way to open a business is with scale and lots of money.

Liquor licenses are a perfect example:

So maybe these are possible in the West, after all. Assuming you have any sort of meaningful pedestrian density, the only real prerequisite might be to just get out of the way of small business.

And I think this is a powerful way to think about cities. We often think about doing new things to elicit certain outcomes. But what outcomes are we missing out on and not seeing because of the rules that we've already put in place?