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And I wish they'd interview people with solutions, too.
This Space Available
By Corey Kilgannon
A survey conducted by Douglas Elliman found that about 20 percent of all retail space in Manhattan is currently vacant, she said, compared with roughly 7 percent in 2016.
A tax on empty retail space that gets higher the longer the space is empty and a state law making unenforceable real estate financing contracts that require a property owner to get a minimum level of rent as part of the contract. Some of the real estate types are saying that a lot of financing requires this.
A tax on empty retail space that gets higher the longer the space is empty and a state law making unenforceable real estate financing contracts that require a property owner to get a minimum level of rent as part of the contract. Some of the real estate types are saying that a lot of financing requires this.
Here we go.....
Woes with retail aren't just "greedy" landlords or whatever; but a large part of it is online sales.
To put it frankly people are voting with their feet, or rather fingers and there just isn't anything anyone can do to put that genie back into bottle.
For heaven sakes Lord and Taylor, Henri Bendel and other large stores are closing, and no it wasn't because of rents either.
Other issue some of you conveniently forget is that commercial RE pays the highest share of property taxes in this city. But don't hear any of you moaning about that, and or screaming for the city to lower those rates. Nor will you because it is what keeps the bread stuck to the butter for many of yourselves. All that cash rolling in from property taxes (of which single-four family pay the least) is what finances all the liberal/left/democratic wet dream giveaways including "low income" affordable housing lotteries.
Much so called retail is "dying" because nearly everything they sold or sell can be had online for not only cheaper, but once places began offering free shipping/returns, that was end of game.
Much so called retail is "dying" because nearly everything they sold or sell can be had online for not only cheaper, but once places began offering free shipping/returns, that was end of game.
That about sums it up. If you look around, you'll see that most new businesses that open no matter where you live in the boroughs are services: a nail salon, hair salon, hookah or vaping places, tanning/spa type place, gyms, paint-a-pot, etc. Those are services that you can't buy online. The days of opening a store with actual product inventory are dying off and you can only have so many of the services stores in one area.
It's unfortunate for local stores but Amazon and other online shopping is where its at: you can comparison shop dozens of food processors or whatever and in some cases have it the same day for free. There is just no way for local stores to compete with that. For example: there is a pet store a bit away from me that is owned by the same family for many years. They are still in business mainly because they have a very loyal following of people who have shopped there forever, but their steady customers are getting old now and they sell everything at list price. I have purchased food and treats there, but when I needed to get a cage for a new adopted pet, I found the exact same make, model and size cage for half the price on Amazon. As much as I want to support local businesses, paying $80-something dollars instead of $40 is just not something I was able to do. The same goes for a cat condo/climbing thing. The difference in price from store to online is tremendous.
That about sums it up. If you look around, you'll see that most new businesses that open no matter where you live in the boroughs are services: a nail salon, hair salon, hookah or vaping places, tanning/spa type place, gyms, paint-a-pot, etc. Those are services that you can't buy online. The days of opening a store with actual product inventory are dying off and you can only have so many of the services stores in one area.
It's unfortunate for local stores but Amazon and other online shopping is where its at: you can comparison shop dozens of food processors or whatever and in some cases have it the same day for free. There is just no way for local stores to compete with that. For example: there is a pet store a bit away from me that is owned by the same family for many years. They are still in business mainly because they have a very loyal following of people who have shopped there forever, but their steady customers are getting old now and they sell everything at list price. I have purchased food and treats there, but when I needed to get a cage for a new adopted pet, I found the exact same make, model and size cage for half the price on Amazon. As much as I want to support local businesses, paying $80-something dollars instead of $40 is just not something I was able to do. The same goes for a cat condo/climbing thing. The difference in price from store to online is tremendous.
Exactly!
Look at what is going into empty retail; food, nail/beauty shops/barbers, gyms, Pilates with perhaps a smattering of wholesale (drop off) Chinese laundries. The latter can make money on volume because all work is sent out to huge wholesale commercial laundries.
Days of opening a little shop to sell "knick-knacks" by bored housewives, or mistresses financed by some guy are over. Ditto really for much clothing, footwear, stationary, housewares, etc.... Anything that can be found online and does not cost much or anything to ship.
New Yorkers like many other Americans have gotten lazy and cheap. Sure they could walk a block or so to Duane Reade or whatever for toilet paper, laundry detergent and so forth; but when Amazon Prime offers such good deals, few are bothering these days. Ditto for pet food (Chewy.com), and a host of other things as well.
Proof of all this can be seen daily as UPS, USPS, FedEx, Fresh Direct, Amazon.com and host of other delivery persons struggle with huge loads of packages out for delivery daily. More proof is seen in lobbies and package rooms that are bursting with stuff on a daily basis. Final proof is seen once a week when paper recycling goes to the curb for DSNY. Mountains of boxes, crates and other shipping containers.
Only way some of these "mom and pop" small businesses possibly can survive is with rents that look like things did in 1970's through good part of 1990's. Good luck with that.
Sounds good, but is not really correct. Recently we've had to big cosmetics chains open in the area. In the mean time several businesses that are not subject to internet competition have gone out candy store, a couple of hair cutting places, restaurants, etc. Some of these I know very specifically were because of landlords looking for higher rents.
I'm not saying that internet competition isn't a factor. And lets not forget the costs that the city imposes on businesses. However, I'm very sure if the LLs were motivated, they could get these stores rented, just not for the jackpot rents they're looking for. But they're holding out. The need to be encouraged to take what they can get, and to not squeeze out what they already have, unless they have an immediate backfill.
Quote:
Originally Posted by BugsyPal
Here we go.....
Woes with retail aren't just "greedy" landlords or whatever; but a large part of it is online sales.
To put it frankly people are voting with their feet, or rather fingers and there just isn't anything anyone can do to put that genie back into bottle.
For heaven sakes Lord and Taylor, Henri Bendel and other large stores are closing, and no it wasn't because of rents either.
Other issue some of you conveniently forget is that commercial RE pays the highest share of property taxes in this city. But don't hear any of you moaning about that, and or screaming for the city to lower those rates. Nor will you because it is what keeps the bread stuck to the butter for many of yourselves. All that cash rolling in from property taxes (of which single-four family pay the least) is what finances all the liberal/left/democratic wet dream giveaways including "low income" affordable housing lotteries.
Much so called retail is "dying" because nearly everything they sold or sell can be had online for not only cheaper, but once places began offering free shipping/returns, that was end of game.
Sounds good, but is not really correct. Recently we've had to big cosmetics chains open in the area. In the mean time several businesses that are not subject to internet competition have gone out candy store, a couple of hair cutting places, restaurants, etc. Some of these I know very specifically were because of landlords looking for higher rents.
I'm not saying that internet competition isn't a factor. And lets not forget the costs that the city imposes on businesses. However, I'm very sure if the LLs were motivated, they could get these stores rented, just not for the jackpot rents they're looking for. But they're holding out. The need to be encouraged to take what they can get, and to not squeeze out what they already have, unless they have an immediate backfill.
Large chain or whatever stores can make their money on volume across entire company, *and* spread costs that way as well. Small businesses are just that; every monthly nut in on one, two or whatever owners. If the place cannot turn a profit and or costs are just too prohibitive, smart money takes their lumps and close up shop.
Target is opening stores all over Manhattan. Meanwhile other smaller mom and pop shops that sell much of not most of same merchandise are closing. I wonder why that is happening?
Renting a commercial space in many ways is no different than residential; landlords look for viable prospects who seem (on paper at least) able to pay rent.
Commercial leases generally run ten, fifteen or more years. Just as with residential if a tenant backs out for whatever reasons (subject to clauses in lease) they can be on the hook for balance of entire remaining lease. This is one big reason why *demand* for retail spaces is not what everyone seems to think. Many potential tenants simply either do not and or are afraid of doing even a ten year lease.
From a LL's point of view commercially they *want* long term tenants. Not turning over same space every five or three years.
From a LL's point of view commercially they *want* long term tenants. Not turning over same space every five or three years.
Thats why the used to like banks....But now even those are closing and some of the ones staying open have shorten their hours.
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