Why are there so many empty storefronts on Bway between 96 & 106?
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Lex, Third, Second and First...same empty storefronts.
That's why I laugh every time I hear one of the many pronouncements about how WONDERFULLY our economy is rebounding. The only rebounding is in prices.
US: "Dear government, tell us what kind of job you are doing with the economy.
Government: "A really SUPERB job."
US: "Good to hear."
I doubt that has much to do with the economy. This area of Manhattan (Bway in the 90s and 100s) isn't really booming, actually had population loss between 2000 and 2010 census.
Landlords jacked up their prices considerable on small business and of course want them to close. They are more than willing to take a loss on these properties. They're holding out for name brand tenants (Starbucks, Subways, Dunkin Donuts, Cell Phone stores, bank branches, etc.) It's not at all a sign of a bad economy.
I doubt that has much to do with the economy. This area of Manhattan (Bway in the 90s and 100s) isn't really booming, actually had population loss between 2000 and 2010 census.
Of course 2010 data is a bit old and the population may have increased since then.
A corner unit sits empty for 3 years. Doesn't that cost the business more than lowering their prices?
No. Commercial leases can be long term, like 10 or 20 years. Better to keep a corner unit vacant for 3 years and hold out for a high paying tenant. Or maybe a developer will buy the building and tear it down and build something new. Or do a gut renovation. Either way better not to have a tenant that signed a long term cheap rent lease.
Property owners can IIRC deduct various losses against gains on their taxes so in the end it may be a wash or barely bother. Think of how long empty lots sit undeveloped.
For the last bit property owners often put up "taxpayer" structure/uses. Things like parking lots or small commercial buildings that can be shut down easily when required.
When it comes to rental space any smart small business owner will examine a lease carefully. If the landlord isn't offering any sort of construction clause, long term lease and other features you'd be a fool to move into the space even if the rent is cheap. It can take a new business a year or longer to "make it" in a new location and recover costs of opening/starting up. If you know in two years your lease will be up and thus a potential increase looming, why bother?
Very good points. Alternatively why bother with a lease if in two years you know it will be up and a gut renovation may be done to the building, forcing you out.
Similarly, landlords kept many residential units in Harlem VACANT as they did not want to rent out to poor tenants. They warehoused empty apartments and kept them as a long term form of investment, gambling that one day the markets would justify sales to developers. This has recently happened big time across Harlem, with tear downs and gut renovations all over the place.
Landlords jacked up their prices considerable on small business and of course want them to close. They are more than willing to take a loss on these properties. They're holding out for name brand tenants (Starbucks, Subways, Dunkin Donuts, Cell Phone stores, bank branches, etc.) It's not at all a sign of a bad economy.
Yep. This is pretty much the case of any area with vacant stores in decent areas of the city. The bad economy barely hurt the businesses in decent nabes in NYC.
A corner unit sits empty for 3 years. Doesn't that cost the business more than lowering their prices?
It does. You're right. I think they do this is because with commercial leases, unlike residential leases, are 5-10 year long leases. I assume landlords don't want to tie up the commercial space to a mom & pop shop paying lower rent for the next 10 years than rent to a Walgreens with a higher rent price for a 20 year lease.
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