Greedy Landlords Causing Storefronts to Sit Empty?
The Daily News has a story about how the one-two punch of unrealistically high asking rents and the recession has resulted in a number of empty storefronts in brownstone Brooklyn. Cases in point, where retail spaces are still empty after rent increases: the dry cleaner on Court and Baltic that had to vacate after the…
The Daily News has a story about how the one-two punch of unrealistically high asking rents and the recession has resulted in a number of empty storefronts in brownstone Brooklyn. Cases in point, where retail spaces are still empty after rent increases: the dry cleaner on Court and Baltic that had to vacate after the landlord hiked the rent from $2,500 to $6,500 a month; Royal Video, above, which left its old Flatbush Avenue spot for a smaller one after the landlord was said to be asking $10,000 a month for the space; and a Myrtle Avenue shoe repair that shut down this fall. It seems, however, that while there are certainly examples of greedy/delusional landlords to be found, there aren’t an overwhelming number of fresh vacancies on the main retail drags in Cobble Hill, Prospect Heights, and Park Slope—that these guys tend to be the exception, rather than the rule. Thoughts?
Brooklyn Storefronts Empty [NY Daily News]
Photo by plangently.
It’s non-binding.
Go back and read the friggin post that YOU posted.
“fsrg…it’s an arbitration methodology.”
Yup just like the RSA…..
Its really not that complicated and greed doesnt enter into it on the LL side anymore than it does on the tenant side – since after all, both are in it for a profit!
Posted by: fsrg at November 23, 2009 12:10 PM
Well said.
DIBS – it is effectivly binding on the LL!
Here it is, decide for yourself
http://legistar.council.nyc.gov/ViewReport.ashx?M=R&N=Text&GID=61&ID=485891&GUID=535B8426-7F2B-4EB3-9491-43468E713F1F&Title=Legislation+Text
And BTW – nothing will destroy Small businesses faster in NYC then this legislation, cause if you think Chains have an advantage now, just wait till this passes – no LL in his/her right mind would ever rent to a new independent business again.
“What could possibly make it more advantageous to not have a tenant for a commercial property?”
– Commercial leases are generally for long term – no one is going to risk $$$ opening a business only to have to have to close it again in a few years because the lease xpires or needs to be renegotiated.
-If I rent a storefront or office today for a very low rent because the economy is tanking or confidence is low, I am stuck with that rent for likely a decade or more.
-If I financed my property, I may have done so based on older (higher) rents, therefore even if I accept lower rent today and make all my payments, when my mortgage comes due (Commercial Mortgages generally ballon after set period), I may not be able to refinance it for the same amount (since value is tied to RR)-therefore I’ll be “underwater” and I may lose the property (and all my equity with it).
Therefore a LL must make a bet over the lifetime of any prospective tenancy – I am better-off renting today at $X or waiting till later and renting at $Y….
Its really not that complicated and greed doesnt enter into it on the LL side anymore than it does on the tenant side – since after all, both are in it for a profit!
Please lets not only call commercial landlords greedy and forget about those wonderful super-greedy residential homeowners who invented the word greed.
Posted by: hannible at November 23, 2009 12:03 PM
I was wondering how long it’d take this idiot to rear its ugly head.
From 1945-1963, New York State law provided strong protection for small businesses in the City through commercial rent regulation. The Small Business Survival Act eschews such major government intrusion in the marketplace, instead returning the commercial lease renewal process to one-on-one negotiations between the two parties.
Please lets not only call commercial landlords greedy and forget about those wonderful super-greedy residential homeowners who invented the word greed.
fsrg…it’s an arbitration methodology. It’s not even “binding arbitration.” You’re wrong.