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Old 09-26-2019, 04:11 PM
 
21,734 posts, read 14,409,788 times
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New report from comptroller Scott Stringer (who wants to be the next mayor so bad he can taste it), tells what many already know; retail vacancies are up all over city. However devil in the details gives lie to oft blamed cause; greedy landlords.

Large issue is what many already know; online/technology has dramatically changed retail, and that genie isn't going back into bottle anytime soon. As such more vacant space seems all but certain.

https://www.amny.com/real-estate/emp...nyc-1.36834078
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Old 09-26-2019, 04:42 PM
 
Location: New York, NY
1,969 posts, read 1,344,351 times
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It’s not just the internet, though. I was at the corner of MacDougal and Bleecker in Greenwich Village the other night and all but one corner store was empty along with a bunch of others near by. There is no way in hell bar owners would not LOVE one of those spots. The area is swarming with people.

About 5 years ago I use to hang out there all the time. The bar I hung out at closed after the owner refused to extend the lease for the bar, which was doing well. He told the bar owner he wanted a bank branch to move in. The bar closed. And it has now been FIVE plus years and it still sits empty.

One problem is that the owners can write the empty store fronts off as a loss for all the years they sit empty. Bring the rent down or stop waiting on a bank branch and those places would be leased in days.

Last edited by WhyRUMad; 09-26-2019 at 04:51 PM..
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Old 09-26-2019, 04:52 PM
 
21,734 posts, read 14,409,788 times
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Quote:
Originally Posted by WhyRUMad View Post
Itís not just the internet, though. I was at the corner of MacDougal and Bleecker in Greenwich Village the other night and all but one corner store was empty along with a bunch of others near by. There is no way in hell bar owners would not LOVE one of those spots. The area is swarming with people.

About 5 years ago I use to hang out there all the time. The bar I hung out at closed after the owner refused to extend the lease for the bar, which was doing well. He told the owner he wanted a bank branch to move in. The bar closed. And it has now been FIVE plus years and it still sits empty.

One problem is that the owners can write the empty store fronts off as a loss for all the years they sit empty. Bring the rent down or stop waiting on a bank branch and those places would be leased in days.
It's funny because it just is *NOT* true.

There is no special deduction or credit for property owners that provides incentives for not renting. That tired old canard keeps being repeated as if it were gospel, when it most certainly is not.

Only things a LL can deduct from property sitting vacant are same ones he could if it were rented; various costs of doing business.

Perhaps the only abused loophole is that landlords can take those said deductions only if they are actively seeking to rent a property. Thus all those "for rent" signs in retail space windows even though plans are being made for redevelopment.

Unlike residential commercial leases tend to run for very long periods (10 to 30 years) as such LL's often carefully vet potential renters to ensure they are qualified.

Renting retail space isn't easy as an apartment either. You've got to show a LL solid business plan, finances, and other proof of being worthy of such a long term lease. When you consider nearly half to three-quarters of all new businesses fail within < three years, landlords are right to be cautious.
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Old 09-26-2019, 04:57 PM
 
Location: New York, NY
1,969 posts, read 1,344,351 times
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Quote:
Originally Posted by BugsyPal View Post
It's funny because it just is *NOT* true.

There is no special deduction or credit for property owners that provides incentives for not renting. That tired old canard keeps being repeated as if it were gospel, when it most certainly is not.

Only things a LL can deduct from property sitting vacant are same ones he could if it were rented; various costs of doing business.

Perhaps the only abused loophole is that landlords can take those said deductions only if they are actively seeking to rent a property. Thus all those "for rent" signs in retail space windows even though plans are being made for redevelopment.

Unlike residential commercial leases tend to run for very long periods (10 to 30 years) as such LL's often carefully vet potential renters to ensure they are qualified.

Renting retail space isn't easy as an apartment either. You've got to show a LL solid business plan, finances, and other proof of being worthy of such a long term lease. When you consider nearly half to three-quarters of all new businesses fail within < three years, landlords are right to be cautious.
The place I’m talking about has had a for rent sign up for 5 years. He is “actively” trying to lease the space and I guarantee he is taking said deductions.

It’s sad because the bar that was there was successful and was a real part of the community. They wanted to stay but the LL flat out refused.

Go to that corner. It’s sad to see.
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Old 09-26-2019, 06:30 PM
 
6,628 posts, read 6,621,152 times
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How many chinese takeouts, laundries, bars, 99c Stores, Bodegas, pizza, various ethnic restaurants can there be in a two block radius?

Maybe rezone and let some of those stores become residential.
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Old 09-26-2019, 06:51 PM
 
21,734 posts, read 14,409,788 times
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Originally Posted by NJ Brazen_3133 View Post
How many chinese takeouts, laundries, bars, 99c Stores, Bodegas, pizza, various ethnic restaurants can there be in a two block radius?

Maybe rezone and let some of those stores become residential.
Cannot be done easily in many cases.

Outside of places in brownstones/tenement apartments that were once residential many commercial/retail spaces do not meet building and other codes for safety and other standards. Things like certain number and location of windows, egress, etc... Changes always could be made, but sometimes cost of doing so is far greater than any likely rent would bring in.

What city could do is stop forcing new development to include retail space. Let developers do community space, or maybe yes residential from start.

One issue to come out of this RE boom is developers often by zoning had to include ground floor retail. So now you've got more space coming on line at a time when many areas are already saturated with retail that cannot (or isn't) renting out.
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Old 09-26-2019, 06:57 PM
 
Location: New York City
8,507 posts, read 6,495,731 times
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Quote:
Originally Posted by WhyRUMad View Post
The place Iím talking about has had a for rent sign up for 5 years. He is ďactivelyĒ trying to lease the space and I guarantee he is taking said deductions.
lol dude you are so confused. A tax reduction of 15% is never better than a 100% loss, it's kindergarten math
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Old 09-26-2019, 06:59 PM
 
Location: New York City
8,507 posts, read 6,495,731 times
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Quote:
Originally Posted by BugsyPal View Post
However devil in the details gives lie to oft blamed cause; greedy landlords.
It IS because of greedy landlords, more accurately because of unrealistic expectations. The internet has killed the stratospheric value of storefronts but they still have high value and landlords are not only refusing to come down they are asking for more
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Old 09-26-2019, 07:46 PM
 
11,250 posts, read 9,605,034 times
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Just put a continuosly rising property tax surcharge for empty retail space. When it starts to hurt, the LLs will get it rented.
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Old 09-27-2019, 08:15 AM
 
Location: NYC
13,445 posts, read 9,113,215 times
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Originally Posted by BBMW View Post
Just put a continuosly rising property tax surcharge for empty retail space. When it starts to hurt, the LLs will get it rented.
It won't work, many property owners are huge conglomerates that owned properties back when the properties were bought for 1/10 of the value today. They make enough leasing to big businesses even if 1/2 of their properties are not being leased just having a few whales leasing is enough.
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