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June 18, 2009

Streetlevel: Knotting Slope Closes

knotting-slope-0609.jpg
After almost five years in their shop at 242 7th Avenue in Park Slope, the folks behind hand-made carpet specialty store Knotting Slope are calling it quits. According to OTBKB, they couldn't afford the rent increase the owner wanted to charge. Their loss is your gain: there's currently a big going-out-of-business sale underway. GMAP




Posted by Brownstoner at 2:02 PM | Comments (29)
Categories: Park Slope, Streetlevel

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Comments

I'm so confused.

The owner wanted to up the rent, but we can be 99% sure this place is going to now sit here vacant for months as the other storefronts (most owned by Berman Realty) have done all along 7th Avenue.

Will a landlord please explain this to me.

Posted by: 11217 at June 18, 2009 2:10 PM

" they couldn't afford the rent increase the owner wanted to charge."

????????????????????????????????????????????????????????????????????????

I think they had a 10 year lease Brownstoner, no one would get a five years lease and sink money fixing the place up. How about "Due to the effects of our economy", I think that sounds better...

The What

Someday this war is gonna end...

Posted by: Return of The What at June 18, 2009 2:20 PM

11217 - I beleive(I could be wrong) that landlords actually make more at tax time from writing off the loss of monthly income from their vacant storefronts than merely increasing the rent for the current shopkeeper....

Posted by: gemini10 at June 18, 2009 2:22 PM

If that's true, Gemini, Bloomberg should be making that priority numero UNO to change!

Posted by: 11217 at June 18, 2009 2:27 PM

I'm sad to see them go. The owners were really nice.

Posted by: slope2009 at June 18, 2009 2:28 PM

Gem - That's fascinating. I've wondered about that for a very long time ever since my fave pastry shop in the Village closed & the bldg sat vacant for literally 10 years!

Posted by: Arkady at June 18, 2009 2:31 PM

I can't keep up with these failures. It's inundating.

***Bid half off peak comps***

Posted by: Brownstones Half Off at June 18, 2009 2:34 PM

Ok, well Mr. B also conveniently left off of the OTBKB write-up that the owners might be moving to Turkey.

That's a fairly important bit of information when discussing a store closing.

Posted by: 11217 at June 18, 2009 2:36 PM

Sorry but I'll have to agree with What on this one. The tenant probably signed a multi-year lease and now doesn't want to pay the increase they agreed to.

I own this same kind of store and I've never found any kind of tax advantage to letting it sit idle. It does, however, take a bit of time to rent a storefront. Many landlords are just looking to cover their expenses and make a reasonable return. Expenses like insurance and re tax continue to spike, especially re tax. Futher, the pool of renters for commercial space is much smaller and more uneven than I would have thought before I owned my little store.

Stuff that sits vacant for really long periods is a different story. Could be incredibly unrealistic LL expectations, dispute among owners or heirs, general condition issues, etc.

Posted by: bessie2 at June 18, 2009 2:57 PM

Thanks Bessie for a reality check from someone who knows what they are talking about.

I will add that with expenses going up and little way to recoup those costs from residential tenants with stabilized leases, landlords often rely heavily on their commercial tenants to make ends meet.

Posted by: JoeBushwick at June 18, 2009 3:23 PM

Joe:

A storefront similar to this on 7th Avenue rents from anywhere between 6-8K a month on average. Sometimes more.

Are you really trying to tell me that this is about trying to "recoup" costs?

You know the former Hollywood Video space down on 5th Avenue and 8th Street that's been sitting there vacant for a year? Rent is 29K a month.

Posted by: 11217 at June 18, 2009 3:37 PM

holy cow

Posted by: joe_the_bummer at June 18, 2009 4:07 PM

That store's not on 7th Ave. And it's not vacant yet. Based on location I'd guess it would rent for about $4K $4.5K/month, maybe less. RE tax could be as high as $13K/yr and insurance about $1,500. Add a mortgage for a property acquired in 2000-2006 and that could be another $36K a year or more. Add carrying costs for electrical and gas service when the space is untenanted, etc. Little if any spread....

Posted by: bessie2 at June 18, 2009 4:29 PM

"The owner wanted to up the rent, but we can be 99% sure this place is going to now sit here vacant for months as the other storefronts (most owned by Berman Realty) have done all along 7th Avenue. "

Sounds like the 'Florent' syndrome.

Posted by: dirty_hipster at June 18, 2009 4:49 PM

Bessie,

So 242 7th Avenue isn't on 7th Avenue?

Posted by: 11217 at June 18, 2009 4:54 PM

Don't mean to be negative re: Park Slope - but commercial rents are WAY too high. I don't understand why 5th Avenue commands such a premium over other main strips in other neighborhoods (Smith, Vanderbilt, Bedford)


This is why everything new and interesting in Brooklyn is opening in other neighborhoods. Landlords should really shape up, as empty storefronts don't help anyone.

Posted by: dirty_hipster at June 18, 2009 5:00 PM

Oh, now I see. There's another knitting shop right off 7th Ave. in Park Slop prime with a very similar facade. This is the one in the South Slope.

Posted by: bessie2 at June 18, 2009 5:00 PM

Actually this is not in South Slope. It's on 7th Avenue between 4th and 5th Streets. Have you been to Park Slope Bessie? ;))


DH - I couldn't agree with you more. 7th Avenue rents are way higher than those on 5th though, which is why a few interesting things still manage to open up on 5th. There are some interesting things on 7th as well, but mainly below 9th Street...Beer Table comes to mind as an example.

I really wish these landlords would wake up and smell the coffee. The one good thing I will say about 7th as opposed to some of the other streets you've mentioned is that the spaces themselves are rather small and prevent too many chains from coming in...american apparel, a million starbucks, duane reades, cvs, etc.

I find Smith Street to be a drag these days...it's getting to be mostly chains. 7th still somehow seems to hold up because the storefronts are so narrow.

Prices absolutely need to come down though. There is beginning to be a serious glut of open storefronts on 7th.

Posted by: 11217 at June 18, 2009 5:08 PM

Oh and Cafe Grumpy is opening on 7th also below 9th Street. Looking forward to that one.

Posted by: 11217 at June 18, 2009 5:10 PM

What...you are entirely wrong about the length of Knotting Slope's lease, and the extraordinary increase demanded by their landlord. Unlike the "old days," very few landlords on 7th Ave. will rent anymore to start-up small businesses that are not connected to larger chains. When they do rent, they rent at a premium and only offer short leases. The owners of Knotting Slope are figuring out what to do once they close. Moving to Turkey is an option they're considering, as a direct result of rent escalation, not the other way around. It's bizarre to read some of the posts above asserting speculation as if it were truth. The same landlord, btw, owns the now shuttered premises of the relocated bagel store, and is seeking to lease all three storefronts to just one tenant.

Posted by: vinca at June 18, 2009 5:11 PM

"The same landlord, btw, owns the now shuttered premises of the relocated bagel store, and is seeking to lease all three storefronts to just one tenant."


Oh, well that certainly helps with the narrow storefront equation. Can't wait for the new Chase Bank then!

Damn.

Posted by: 11217 at June 18, 2009 5:13 PM

a store that sells fugly carpets. big woop. i cant cant anything i want/need in this neighborhood anyway. hello degentrification!

8rob*

Posted by: PitbullNYC at June 18, 2009 5:31 PM

Business owners in Nolita, LES and the EV are getting hammered at the moment, and many interesting boutiques as well as a bars/restaurants are looking to lower overhead to make up for a decrease in sales. Landlords in the Slope need to lower rents for commercial space at least 30% - and stop charging outrageous "key fees" to be able to take advantage of this mass exodus from Manhattan. For someone paying 15k on Elizabeth St, paying 10k per month on 5th ave just isn't attractive - as foot traffic is less, especially when similar spaces could be had in other neighborhoods for 6k per month.

Posted by: dirty_hipster at June 18, 2009 5:38 PM

"Landlords in the Slope need to lower rents for commercial space at least 30% - and stop charging outrageous "key fees" to be able to take advantage of this mass exodus from Manhattan."

You are 100% dead on. I know of quite a few people who would LOVE to open up shop in Park Slope but don't want to because of the outrageous rents. It has quite an affluent population which could support some really great things, but the landlords are screwing everyone over.

Posted by: 11217 at June 18, 2009 5:42 PM

Rob, I'm curious: have you been in that store, even once, to be able to comment on their inventory? Anyone who's ever been into Knotting Slope has had the pleasure of the owners' knowledge, generosity and hospitality, regardless of whether they ever make a purchase. I'm one of those people. I went in with an old carpet needing repair and was treated to a history lesson on the era and village of it's origin. I recommend the store and the sale to anyone interested, and will very much miss the owners with whom I have enjoyed so many pleasant conversations.

Posted by: vinca at June 18, 2009 5:42 PM

hopefully they'll wisen up 11217

Posted by: dirty_hipster at June 18, 2009 5:53 PM

I have a lot of trouble conceiving of how a yarn store can turn a profit. $2,000 per month is a lot of yarn to sell just to cover rent.

Posted by: slick at June 19, 2009 3:04 AM

Yarn store? It's a rug store slick.

Posted by: Bob Marvin at June 19, 2009 8:25 AM

Of course Rob has never been in that store. This lack of first hand knowledge will not - as we all know by now - stop him from making his inane pronouncements.

The owners are very friendly and knowledgeable, and they have some very nice stuff there. The bf bought a kilim and a couple of pillows there. I'm contemplating buying a rug there myself for my new place.

Posted by: SnarkSlope at June 19, 2009 10:19 AM

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