(Drivebycuriosity) - I live on Manhattan´s Lower East Side. I notice that in my neighborhood many storefronts are unoccupied. Alone on my block are seven outlets closed and waiting for a new renter. And 2 of my favorite sushi joints closed in the recent weeks and their spots are on the market.
There are many reasons why a shop closes, but the most common is the rent. Many shop, bar & restaurant owners can not afford the high rents in Manhattan, even in lowbrow areas like East Village & the Lower East Side. A while ago a tiny store front on my blog was advertised for $5,000 per month, it might be even higher now.
I understand that landlords need to earn money and that they have to pay their mortgages. So they wait till they find someone who takes the place and is able to pay the stipulated rent.
But some storefronts are idle for years. In the year 2017 closed Schiller´s, which was once a very popular bar. The place stood vacant till 2022, when Shake Shack finally took the spot. The fast food joint opened just last week.
The landlords receive zero money for the long waiting period and have still to pay the banks, so they are accumulating losses. And a row of vacant store fronts does not really advertise the area and might even reduce the value of the real estate and so the possible rent.
Why aren´t the landlords not flexible and adapt the rents to the demand and the market situation? Accumulating losses over years - in the vague hope to find soon a new renter - does not look really smart.
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