Despite government support during the pandemic many business owners cut their losses, terminated their leases and closed down, pushing retail vacancies in New York to new highs
Just across the street, however, an empty shopfront crumbles from neglect. Despite ample government support during the pandemic many business owners cut their losses, terminated their leases and closed down, pushing retail vacancies in New York to new highs. Fully 13% of shopfronts in the West Village are vacant, compared with 1.9% in 2007 and 8.2% in 2017, according to data compiled by Scott Stringer, the city’s comptroller and now a candidate for mayor.
Retail rents have fallen sharply: in some neighbourhoods, like SoHo, they have dropped by more than 20% since 2019. That should make spaces more affordable—and attractive—to prospective tenants. But there is still a mismatch between what landlords and tenants want. Though it is costly for residential tenants to move, they rarely have to incur the expense of building a kitchen or a bathroom when they arrive.
An added complication comes from structural shifts in shoppers’ habits. Many observers, including Mr Stringer, reckon that the rise of online shopping explains why vacancy rates were rising even before the pandemic. The continued trend may lead landlords to accept that rents could stay low for a while. But faced with the uncertainty of whether a retailer will survive or not, they may prefer to wait for the right sort of tenant.
Even if landlords are willing to sign a lease with a lower rent, those with a commercial mortgage can find their hands tied. “Lenders often include covenants in their loan agreements,” says Dan Rosenbloom of Cadre, another investment firm. These might stipulate that the rent must at least cover the interest owed.
The queues snaking around the corner of Magnolia Bakery and the throngs browsing in the pricey shops along Bleecker Street suggest that there is no shortage of demand for cute bakeries and boutiques in the West Village. But that does not mean the empty properties next door will be snapped up soon.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York state assembly passes bill that would create gender-neutral marker on state identificationA New York bill that would allow people to use a gender-neutral 'X' as a gender marker on driver's licenses and birth certificates passed the New York State Assembly on Thursday and now goes to the governor for final approval.
Read more »
Adams takes hits on living arrangements as New York mayoral candidates spar in third debateMayoral candidate Andrew Yang accused frontrunner Eric Adams of secretly living in New Jersey and contender Maya Wiley refused to commit to keeping the police armed.
Read more »
One Year After the BLM Protests, New York Is Close to Electing a CopHow did a pro-cop candidate end up leading mayoral polls in a city that protested police brutality in massive numbers?
Read more »
New York lawmakers move to open the gun industry to liability lawsuitsNew York state lawmakers passed a bill Tuesday that allows for civil lawsuits against gun manufacturers, distributors and dealers for how they market and sell firearms
Read more »
Helmet Laws Are Not What New York City Cyclists Need Right NowElected officials keep proposing more rules for bicycles and scooters. But what's really needed is traffic-calming infrastructure to make streets safer. awalkerinLA reports
Read more »