The Tea Lounge Bids Adieu
Signs have been posted for weeks that the 7th Avenue location of Tea Lounge is closing due to a hefty rent increase, but latte sippers got a shock yesterday morning when a new sign went up: Thursday, July 24 was the cafe’s last day of business—not even a ceramic mug was left on the shelves….
Signs have been posted for weeks that the 7th Avenue location of Tea Lounge is closing due to a hefty rent increase, but latte sippers got a shock yesterday morning when a new sign went up: Thursday, July 24 was the cafe’s last day of business—not even a ceramic mug was left on the shelves. A rumor circulated that a Vietnamese sandwich shop might be taking root there, though Tea Lounge workers intimated the deal fell through. Anybody know what’ll go in the space next?
Two Down in Park Slope [Brownstoner]
Background photo by kansasliberal
Thanks jeffrey. I think your suggestion is a fair compromise.
Biff, just to clarify or reiterate what I mentioned above, fair market price is the highest price point where demand actually exists, where the market is cleared.
Yeah, I agree, I absolutely do not support penalties.
What I do support is a limit on how long one can seek lower taxes for an idle property.
You’d better believe that if landlords were only allowed one year to reset their tax base, that they’d adjust their prices to actual demand (offers made) like the rest of businesses out there that are subject to pricing whatever the market will bear.
jeffrey, ok, I suppose I could have said, “And what about landlords who simply can’t find tenants even when offering fair market prices?” On the other hand, I could ask you who can say what is a fair market price? That’s no less vague than saying “reasonable”.
Regardless, my point was simply that the last thing we need is someone trying to assess the motives and efforts put forth by landlords in trying to rent their properties and hitting them with tax penalties when their places sit vacant.
eight aver- my friend’s space in the buildings being knocked down included 2 huge store spaces side by side and 2 mezzanine levels that were half the size of the ground floors, plus the full basement under one store (which I believe also ran under the sidewalk to the curb as well, not stopping at the prop line. I’m not totally certain on that, it’s hard to judge in the basement but there is a small room that juts beyond the main room) and part of the basement of the second store. So it was a massive amount of space in a prime midtown business district between 5th and 6th.
I just don’t see most small Brooklyn businesses being able to sustain that kind of rent.
Biff, what rent is “reasonable” if there is no demand for it (at that level)?
Everything rents at fair market price.
Fair market price is where demand meets supply to clear the market, not where supply artificially thinks it should be propped up to be.
That said, taxes should absolutely be in lock step with increases or decreases in income on a property.
But gaming the system as described above (limiting supply to artificially high prices, to get gov’t benefits as if demand did not exist) goes against the principle of that.
Again, set the right price, and any property (especially in these neighborhoods, yeesh) will have sufficient demand.
tscola, I don’t know how that could possibly be enforced. And what about landlords who simply can’t find tenants even when offering reasonable rents? I don’t think it’s fair to double whammy them.
bxgrl, I would love to see the new store sometime.
It sounds as though there ought to be some sort of tax penalty for vacant store fronts, if landlords are deliberately depriving the city of sales and income tax revenue.
Well Polemicist- tis ignorant you are. Your little zoning maps don’t tell the whole story which, if you had spent as much time in the garment area as you do posting ignorant drivel, you would know. (but congrats on the Astor history- it’s good to know you have enough of a brain to google wiki).
You’ll also notice that you love putting words in people’s mouths which points out your vast inadequacies with reading comprehension, debate and simple discussion. No where did I say there would be mass knockdowns. But if you would like to actually be more knowledgeable than you think you are, go to midtown and walk around. Then come back and post. And FYI- I practically grew up in the garment center- my dad was a garmento, and because of business I am frequently there, so my knowledge of the changes in the garment center, are far more than you will ever comprehend.
Biff- they are moving around the corner to 37th st. and 5th. I have to bring you there sometime- her store is a real treasure and I’m glad she was able to find a new space and not go out of business. FYI- the building she is moving into has a small lobby with wonderful original WPA murals.
Regarding why landlords let properties sit vacant for years…
nkotsonis here has posted on prior occasions that landlords (like him) do this because it lowers the tax basis of their property. They set supply at extremely high prices calling it “market” (because some loaded — but, hah, failing — chain like Starbucks overpaid somewhere near that recently or somesuch) and let matters play out such that…
1) either someone else comes in at that nutball rate and they make greater profit margins
or
2) the property sits empty, forcing the city to lower the taxes on the place considerably, enabling much larger long-term profit margins when they finally do get someone to pony up to higher rents.
So yeah, long-term, they make much more profit by letting things sit empty.
Whee.