Expect More Empty Storefronts

Get used to seeing empty retail space: Real estate brokers tell the NY Times "they expect store closings in the city to rise this year." Over the next weeks, retailers will determine how their fourth quarter (especially holiday period) sales were and many expect the "pace of store closings to pick up in February and March." The number of Manhattan retail leases fell 33%, comparing 4th quarter 2008 to 4th quarter 2007, and landlords have—gasp—started to lower rents, even on Madison Avenue and in SoHo. One broker explains, "Savvy landlords are keeping tenants in place, even if it means accepting a rent that they might feel is under market." So maybe there is hope for the mom-and-pop venues out there, like the Emerald Inn.

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By Jen Chung in News on January 14, 2009 12:11 PM

Comments [rss]

SikBug

Anyone how much the rents are really coming down? I called a place yesterday out of curiosity and they were asking $150 a sq ft for a 1,000 sq ft space of storefront in midtown.

ed_Extinct

Empty store fronts will make for a much less safer street experience.

All you hipsters got your wish, the streets will be mean again soon... And then you can complain you can't go anywhere without thinking you're gonna get pistol whipped.

Outter Burrougher

i like the idea that they think that just because it's less than what they wanted to get, it's somehow undermarket. If it's the rent that you are capable of getting for the space, than it is the market rate.

SP

You are spot on. The "market" rate is a fucking mirage.

Internet Handle

This pisses me off. Wouldn't you rather be collecting SOME rent than NOTHING?

Felix Hoenikker

I'll play devil's advocate, but don't expect the tax assessment on those properties to drop with market values and rents.

NannyState

Landlords in wildly overpriced submarkets lowering rents? You mean we're not all billionaires who've been cheating them out of their just profits for years?

nicemarmot

I just really hope these are all the idiot landlords who evicted their old tenants hoping to milk the "market" for more, without actually having a new tenant in place.

pete

But that means you have to increase the price on existing tenents, just give a 200% increase on Duane Reade's next renewal and you'll be just fine.