In the News: The Retail Real Estate Glut

April 24, 2017 Community News, Crime, Real Estate

••• “American retailers are closing stores at a record pace this year as they feel the fallout from decades of overbuilding and the rise of online shopping.” This Wall Street Journal article isn’t about Tribeca, per se, but it’s still relevant. Many of us have a tendency to blame landlords for empty storefronts, but there are other factors at play; even if the landlords slash rents, there are not likely to be enough stores to fill them.

••• “El Chapo Complains About Conditions at Manhattan Jail: The drug lord and serial prison escapee has been protesting issues including the tap water, visitor restrictions and the television programming in the rec room.” —New York Times

••• “NYPD reports male shot at Washington and Battery Place.” —Tribeca Trib

 
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7 Comments

  1. Native
    April 24, 2017 • 4:52 pm

    Not every store is a clothing store so yes we blame landlords . Perfect example Gee Whiz had to cut in half 100 thousand a moth rent it’s the landlords

    • Rohin
      April 24, 2017 • 9:56 pm

      To put it in strictly economic terms the landlords are trying to charge new rents that the market will no longer substain. This leads to rows of empty storefronts which in turn further acerbates the issue by lowering the marketability of the neighborhood.

    • safe as milk
      April 25, 2017 • 10:05 pm

      i have a theory about this… i think the landlords can’t lower the rents because that will lower the appraisal of the building. they would rather have the space go idle and lose money because if the appraisal goes down, their highly leveraged credit goes down with it.

  3. Elen Paumere
    April 26, 2017 • 10:49 pm

    You’re talking about large, corporate, multi-unit operators that are over-stored. The rent rates prevent the smaller/single unit operators from growing. That and online mediums such as grubhub and uber; which destroy operator margins.