Papyrus greeting cards closing all shops. (Boston, Newton: real estate, leases, house)

[bostonguy1960]

Wow. And their shops are in nice locations. (But I get them confused, I guess, with those Paper Source shops.)

I passed the one on Tremont near Government Center and it already has its going out of business signs all over the windows. I enjoyed their Christmas window display two years ago from the outside windows and meant to buy something on display.

Sure, we can find their $8-$9 fancy cards at Star Market and Whole Foods Market -- but now we'll have lots of added empty storefronts in town and their several suburban locations I looked up.

I only bought one of their fancy cards, from maybe Star Market, but do enjoy looking at them wherever sold. And they have nice wrapping paper.

I think I read they'll keep their online presence?

Yes, first world problems, but sad to see another chain dissolve...

[chicagoliz]

I feel the same way. I am sad to see them close, although I only bought from them occasionally, they were still a nice store. I think they're keeping a presence in terms of supplying greeting cards -- Target, and other stores, like Macy's sell Papyrus cards.

I always hate the empty storefronts, too.

[Robert5]

Any storefront that is vacant in the Boston area is vacant only because the owner is asking an enormous amount of money. Two Starbucks in Brookline have closed in the past few months primarily because of the rent issue. It seems like the only companies that can handle the rents for prime spots are Banks and Cell phone companies.

[chicagoliz]

Originally Posted by Robert5

Any storefront that is vacant in the Boston area is vacant only because the owner is asking an enormous amount of money. Two Starbucks in Brookline have closed in the past few months primarily because of the rent issue. It seems like the only companies that can handle the rents for prime spots are Banks and Cell phone companies.

This is really sad to me and the same issue is going on in Newton. At this point, there is actual outrage whenever yet another bank opens a branch in one of the village centers. Last year, a Peet's Coffee closed and a Chase Bank went in. That is such a big loss for Newton Centre, which right now still has enough shops and restaurants/coffee places/ice cream shop to draw people to it. But if everything becomes a bank and a cell phone outlet, no one is going to go there except for the people who actually work in the real estate offices and banks.

I'm kind of at a loss as to what the answer is. On the one hand, it is simple supply and demand. If there aren't enough customers to buy enough stuff in the shops to enable the shopkeepers to pay the rent, then theoretically, there isn't enough demand for that shop. But I actually think we need to be saved from the bad effects of pure unrestrained capitalism and the harsh realities of the market without any concern as to the externalities caused by the behavior of marketplace participants. I don't know what measures could be taken in this instance, though. Some kind of tax break or subsidy by towns? It adds to the vibrancy and desirability of the town to have a robust and thriving town center. When they all become banks, there is absolutely something that is lost.

[BostonBornMassMade]

Originally Posted by chicagoliz

This is really sad to me and the same issue is going on in Newton. At this point, there is actual outrage whenever yet another bank opens a branch in one of the village centers. Last year, a Peet's Coffee closed and a Chase Bank went in. That is such a big loss for Newton Centre, which right now still has enough shops and restaurants/coffee places/ice cream shop to draw people to it. But if everything becomes a bank and a cell phone outlet, no one is going to go there except for the people who actually work in the real estate offices and banks.

I'm kind of at a loss as to what the answer is. On the one hand, it is simple supply and demand. If there aren't enough customers to buy enough stuff in the shops to enable the shopkeepers to pay the rent, then theoretically, there isn't enough demand for that shop. But I actually think we need to be saved from the bad effects of pure unrestrained capitalism and the harsh realities of the market without any concern as to the externalities caused by the behavior of marketplace participants. I don't know what measures could be taken in this instance, though. Some kind of tax break or subsidy by towns? It adds to the vibrancy and desirability of the town to have a robust and thriving town center. When they all become banks, there is absolutely something that is lost.

Eventually the repetition and lack fo dynamism will hurt the town centers and bring down rents but that will only happen during and after real estate values DECREASE not just slow their growth.

The thing in the Boston Area is no one, no entity, really fight me for anything but residential real estate. At all social levels, occupations. It’s like” yea we’d like more recreation but if we can’t have it it’s fine I guess” and everyone just goes with it.

[lrfox]

Originally Posted by chicagoliz

I don't know what measures could be taken in this instance, though. Some kind of tax break or subsidy by towns? It adds to the vibrancy and desirability of the town to have a robust and thriving town center. When they all become banks, there is absolutely something that is lost.

Robert 5 hit on it a little already, but many storefronts end up vacant for extended periods of time intentionally. Commercial lease terms tend to be significantly longer (+/- 10 years or so), and landlords understandably want to lock in a tenant for a long time at a high rate. Banks tend to be among the handful of entities who can do that with any regularity.

Since commercial leases are more of a long game, there's little incentive for a landlord to reduce rent for a tenant or officer a short term lease. They can hold out for years and leave a storefront vacant if the market indicates that they'll eventually get a lucrative long term lease at market rate. If Old Navy is paying $100 per square foot at 1 Franklin/Millennium Tower, nearby landlords expect the same return. So you end up with empty storefronts that cost a fortune, or soulless places like Chase Bank that contribute very little to the community. Bleeker St. in NYC is an infamous example of this "high end blight." But we're seeing examples here in Harvard Square, Downtown Crossing, and along Newbury Street.

I'm not sure what the answer is either. Some cities take a punishment approach - San Francisco is considering taxing vacant storefronts. Others areas (inc. Massachusetts, I believe) are considering taking the opposite approach - tax breaks as incentives for landlords (and tenants) who move into/lease vacant storefronts. I'd imagine the right answer is going to require a much more nuanced and localized approach (i.e. Boston should absolutely tax greedy landlords on Newbury St. if they're holding out, but the environment in Mattapan Square is very different, and incentives may be more beneficial). But something needs to happen or it'll continue to get worse.

[Bridge781]

Sur la table is also closing. Lots of places closing thanks to amazon.

If I have a choice to buy something online and have it delivered to my house instead of driving through busy traffic to a crowded mall or city street (and to find parking) of course I’m getting it on amazon.

I don’t feel sorry about it either. This is the way of the world. We all need to get things done in a hurry. Ain’t nobody got time for traffic and malls. The people who will keep going to the stores in Boston are I guess the wealthy people who live near them?

I can’t quite figure the mall thing out. Anytime I go to a mall or newbury st it’s beyond busy. Clearly people are going to stores. Do they just not buy anything? Lots of stores are indeed closing but people still go into them as far as I can see.

[lrfox]

Originally Posted by Bridge781

Sur la table is also closing. Lots of places closing thanks to amazon.

If I have a choice to buy something online and have it delivered to my house instead of driving through busy traffic to a crowded mall or city street (and to find parking) of course I’m getting it on amazon.

I don’t feel sorry about it either. This is the way of the world. We all need to get things done in a hurry. Ain’t nobody got time for traffic and malls. The people who will keep going to the stores in Boston are I guess the wealthy people who live near them?

I can’t quite figure the mall thing out. Anytime I go to a mall or newbury st it’s beyond busy. Clearly people are going to stores. Do they just not buy anything? Lots of stores are indeed closing but people still go into them as far as I can see.

Which one is closing? There are a couple of Boston area locations.

[masssachoicetts]

People travel to Newbury Street or Boylston St just to walk around. I go into the stores, but I cannot remember the last time I bought something on Newbury... However, I do eat there.

[lrfox]

Originally Posted by masssachoicetts

People travel to Newbury Street or Boylston St just to walk around. I go into the stores, but I cannot remember the last time I bought something on Newbury... However, I do eat there.

A lot of businesses know and embrace that many people do this. For example, Allbirds on Newbury has very limited inventory in the store. The storefront mostly exists for two reasons. 1) Brand visibility - it's a luxury location so even passersby associate brands they know little/nothing about with being "premium." Basically, being on Newbury is good adverstising. And 2) to facilitate online sales. For people who do go into the stores, they can try own shoes and get a feel for their real size. They can order from the store and have the shoes shipped to their house (often free of shipping charges). It takes guess work out of the online shopping for the average person (buying shoes online is tough).

Bonobos takes this even more to an extreme. Their storefront on Seaport Blvd is tiny. They have next to zero inventory for buying in the store. The physical storefront exists only as branding (brand associated with a "premium" location), and to enable people to come in and try on samples and different styles/fits, and then allow them to order on the spot (no shipping), or order online later and have the stuff shipped home. This strategy cuts WAY down on the amount of inventory a store needs to maintain, which cuts WAY down on the amount of space needed. It also cuts down on staffing requirements, losses from theft, etc. Stores that go this route will likely be how brick and mortar retail thrives in the future.