Retail Hardest Hit in Brooklyn
Few stores have been able to avoid the painful effects of the current recession, but mom-and-pop stores, without the deep pockets of national chains, are particularly vulnerable to the downturn. And, it turns out, these locally-owned stores are getting particularly hard hit in Brooklyn. According to a study by Rep. Anthony Weiner’s office, 14.1 percent…
Few stores have been able to avoid the painful effects of the current recession, but mom-and-pop stores, without the deep pockets of national chains, are particularly vulnerable to the downturn. And, it turns out, these locally-owned stores are getting particularly hard hit in Brooklyn. According to a study by Rep. Anthony Weiner’s office, 14.1 percent of small stores in Brooklyn are now vacant, compared with 12.2 percent in Queens and 9.1 percent in the Bronx. When the economy catches a cold, small businesses catch pneumonia, said Mr. Weiner, in a press release. Too many community shops—the backbone of the city’s economy, are hit hard by this downturn.
Brooklyn Stores Hit Hardest by Retail Slump [Crain’s]
landlord,
Of course rent is only one of many expenses retail businesses must pay, but fools love to pin the blame on somebody, so they choose to blame the landlord for jacking the rent. Of course every business model is different, but for restaurants in particular, rent is only a fraction of expenses.
Most small landlords aren’t jacking rents in this environment for proven long term tenants.
Like always, well run businesses that provide a needed service are staying in business and those that aren’t are going out of business. Sure, in a down economy there’s less spending overall, but well run businesses should be able to overcome short term slowdowns.
Landlord- yes- you’re right. The economy and the business do have a lot to do with success or failure. But I have seen far too many businesses lose their leases or have them increased so much that they drive out the business. Rent is probably the biggest single expense expense a business has to cover each month- and depending on what it sells, a drastic increase in rent or any other necessary expense can tip a successful business into failure.
I DO NOT AGREE WITH YOUR COMMENTS
Although rent plays a big role in whether a store will succeed or not, its not the only variable!
I am renting a store with a 15 year lease in park slope. The owner of the buisness has 1 year left on his lease. However, he is closing his business now because things have gotten really bad for him. Sales are not what they used to be. Even though he has 14 months left on his lease, he decided to close.
………so he is paying the same rent I was charging him 14 years ago….and he is still closing down!!
Its definitly not the rent. Its the business model and the economy. At least in his case.
“fear: ‘wow that sounds like a four letter word'”
ROTFLMMFAO
***Bid half off peak comps***
It is never one or the other – businesses who have been there for this mythical “forever” OR gentrifying pirhanas ready to eat up every semblance of authenticity. There are plenty of small businesses that are started by local residents, who love Brooklyn and want to establish themselves within the character of the borough. But it is hard. Brooklyn is getting more, not less expensive, and space it at a premium in many neighborhoods. But these businesses provide jobs and character and possibility for insiders in as many cases as outsiders. Entrepreneurship should be taught in our schools as a viable and exciting path to wealth creation, and this has to be underscored by a support from city government for the fostering and protection of small businesses.
In my area of CHN we would love more shops and stores along Nostrand- but improving a neighborhood is not the same thing as “gentrification.” :
Gentrification, or urban gentrification, is the change in an urban area associated with the movement of more affluent individuals into a lower-class area.[2] The area experiences demographic shifts, including an increase in the median income, a reduction in household size, and often a decline in the proportion of racial minorities (if such minorities are present).[3] More households with higher incomes result in increased real estate values with higher associated rent, home prices, and property taxes. Industrial land use can decline with redevelopment bringing more commercial and residential use. Such changes often result in transformation of the neighborhood’s character and culture.[4]WIKI
The family owned hardware store by me is owned and run by a local guy. And there are a number of places like this- and many more local people would open and run businesses if they had the money and support to do so. That’s not gentrification, that’s bootstrapping, to me. We need a lot more of that. And we need a lot more landlords to stop getting greedy and squeezing out the very businesses that improve the neighborhood. Places like Eva Daniels add value- shortsighted landlords don’t get this important point when they raise the rents and drive them out.
“I rarely agree with many of your posts, but the whole triple the rent thing is stupid. ”
I rarely agree with many of your posts, but the whole Mutant Asset Bubble thing is stupid?
This is the psychology of the MAB. Greed and Delusion has a negative effect on people, especially those who has been influenced by it. Look at this statement again: “Unlike yourself I am more open to the “gentrification process”
Gentrification is dead. The whole foundation of the MAB was Gentrification and that has been replaced by fear: “wow that sounds like a four letter word) but empty store fronts are not good for any class / sector of our fragile economy.”
There is another post about Gentrification and the comments from the Assheads are funny. Man this will not end well…
The What
Someday this war is gonna end…
everyone essentially wants “gentrification” just to varying degrees. It might be something as small as someone wanting a grocery store on their block that has nice meat and produce to someone wanting stores that sell 1000 dollar dresses. No one wants to live in a ghetto with no grocery options and only shitty fast food joints.
a good example is sunset park around 8th ave. Every store front is open and jammed with shit. Sometimes way too much shit. There are more people walking around buying stuff than in the more expensive brownstone brooklyn areas and you can seriously buy anything you need. The area is safe and its still cheap to live in. Is this gentrification? If its not then what is it.
What,
I rarely agree with many of your posts, but the whole triple the rent thing is stupid. I did also hear that the space Eva Daniels was in will rent for $6,000. ??? Unlike yourself I am more open to the “gentrification process” (wow that sounds like a four letter word) but empty store fronts are not good for any class / sector of our fragile economy. I am scared that there will be more of this to come, and that saddens me.