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Old 07-09-2018, 08:13 AM
 
Location: New York City
9,334 posts, read 9,191,704 times
Reputation: 6418

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Quote:
Originally Posted by rowhomecity View Post
Walnut St. in my opinion has inflated rents given the price per sq. ft if sales can't meet those rents. The stores will close.


https://www.nytimes.com/2017/05/31/f...orefronts.html

This article explains it quite well and it's relatable to Walnut St.

This article is 4 years old. But knowing the progression of rent it has only continued on this trend.

https://www.bizjournals.com/philadel...ut-street.html

King of Prussia is not the problem. King of Prussia is an anchor. And when you look at the region as a whole, even though Center City incomes are impressive and real estate is high. The concentration of wealth is in the Western Pennsylvania suburbs. (Gladwyne, PA is #6 wealthiest in the nation and #2 in the entire Northeast).

Example: If rents for Diesel on Walnut are twice that of KOP. But sales are the same. It makes sense. To close Walnut St. It no longer is profitable.

With that. Walnut St. is going through its bleaker st. phase. Rents have risen. And they need to correct themselves.

Chestnut St. has taken off, because its rents are literally about half of Walnut. (who knew one block would make such a difference).

Cheers.
Which is why I hate greedy landlords, Bleeker St has been ruined by the constant increases.

But I do think Walnut wasn't that strong of a retail corridor to begin with, hence why those locations are always among the first to close when retailers announce closures.

Even if KoP rents are half that of Walnut (which I don't think they are), its all about location in a developed market and being seen (hence 5th Ave in NYC. Most of those stores don't earn money, but its about the status of the location. Walnut St never made that status list).

Chestnut St certainly looks a lot better, but I wouldn't say it has "taken off"

Anyways, I am hoping for some stabilization once the Gallery re-opens.
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Old 07-09-2018, 08:15 AM
 
Location: New York City
9,334 posts, read 9,191,704 times
Reputation: 6418
Also, my friend who works for Simon in NYC said that Christian Louboutin is in talks of a space in KoP.
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Old 07-09-2018, 12:18 PM
 
Location: New York City
9,334 posts, read 9,191,704 times
Reputation: 6418
Actually Christian Louboutin is official, on their website.
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Old 07-10-2018, 06:44 AM
 
10,787 posts, read 8,664,920 times
Reputation: 3983
Quote:
Originally Posted by cpomp View Post
Which is why I hate greedy landlords, Bleeker St has been ruined by the constant increases.

But I do think Walnut wasn't that strong of a retail corridor to begin with, hence why those locations are always among the first to close when retailers announce closures.

Even if KoP rents are half that of Walnut (which I don't think they are), its all about location in a developed market and being seen (hence 5th Ave in NYC. Most of those stores don't earn money, but its about the status of the location. Walnut St never made that status list).

Chestnut St certainly looks a lot better, but I wouldn't say it has "taken off"

Anyways, I am hoping for some stabilization once the Gallery re-opens.
East Market will open way before that.

Chestnut is indeed much better. Again it's a bit of a re-birth because much of the decent shopping was on Chestnut. The combination of restricting vehicular traffic years ago( no one was riding bikes in CC back then either) and malls/growth of
KoP killed Chestnut.
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Old 07-10-2018, 06:45 AM
 
10,787 posts, read 8,664,920 times
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Quote:
Originally Posted by cpomp View Post
Also, my friend who works for Simon in NYC said that Christian Louboutin is in talks of a space in KoP.
Whoa....
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Old 07-11-2018, 08:38 AM
 
Location: New York City
9,334 posts, read 9,191,704 times
Reputation: 6418
As our definition of luxury shifts, Walnut Street evolves with it | Elizabeth Wellington - Philly

Write-up on Walnut St. Apparently a Citizens Bank is opening on the corner of 17th St (Aerosoles spot)...

Rumors of Rag & Bone closing.

BUT, Scotch & Soda (great brand) is opening in the old Micheal Kors space. And Brandy Melville as well (LA based women's clothes).

The article does make good points, I do think the definition of luxury is shifting, and young people don't invest in clothing/ care as much compared to past generations, but there is proof that luxury is still in demand, however, there is a shift in what people want and how they want it and where they get it.

Funny they mention Christian Louboutin too.
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Old 07-11-2018, 08:51 AM
 
10,787 posts, read 8,664,920 times
Reputation: 3983
Quote:
Originally Posted by cpomp View Post
As our definition of luxury shifts, Walnut Street evolves with it | Elizabeth Wellington - Philly

Write-up on Walnut St. Apparently a Citizens Bank is opening on the corner of 17th St (Aerosoles spot)...

Rumors of Rag & Bone closing.

BUT, Scotch & Soda (great brand) is opening in the old Micheal Kors space. And Brandy Melville as well (LA based women's clothes).

The article does make good points, I do think the definition of luxury is shifting, and young people don't invest in clothing/ care as much compared to past generations, but there is proof that luxury is still in demand, however, there is a shift in what people want and how they want it and where they get it.

Funny they mention Christian Louboutin too.
As I said slightly older millennials are having children. Aren't you seeing that in NY? Kids cost a lot( obviously). Priorities shifting.
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Old 07-11-2018, 10:24 AM
 
5,546 posts, read 6,827,966 times
Reputation: 3825
Quote:
Originally Posted by cpomp View Post
As our definition of luxury shifts, Walnut Street evolves with it | Elizabeth Wellington - Philly

Write-up on Walnut St. Apparently a Citizens Bank is opening on the corner of 17th St (Aerosoles spot)...

Rumors of Rag & Bone closing.

BUT, Scotch & Soda (great brand) is opening in the old Micheal Kors space. And Brandy Melville as well (LA based women's clothes).

The article does make good points, I do think the definition of luxury is shifting, and young people don't invest in clothing/ care as much compared to past generations, but there is proof that luxury is still in demand, however, there is a shift in what people want and how they want it and where they get it.

Funny they mention Christian Louboutin too.
Very happy about S&S! Thanks for the information.
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Old 07-11-2018, 07:26 PM
 
377 posts, read 663,693 times
Reputation: 439
Quote:
Originally Posted by cpomp View Post
As our definition of luxury shifts, Walnut Street evolves with it | Elizabeth Wellington - Philly

Write-up on Walnut St. Apparently a Citizens Bank is opening on the corner of 17th St (Aerosoles spot)...

Rumors of Rag & Bone closing........
If so, this is support for the decision: https://philadelphia.cbslocal.com/20...e-merchandise/
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Old 07-11-2018, 07:40 PM
 
Location: New York City
9,334 posts, read 9,191,704 times
Reputation: 6418
Quote:
Originally Posted by acenturi View Post
If so, this is support for the decision: https://philadelphia.cbslocal.com/20...e-merchandise/
And that is an example of why we can't have nice things.

Shoplifting happens everywhere, but an attack like in Broad daylight on Walnut St. All I can do is shake my head.
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