Empty store fronts

[Bel84]

It is my understanding that the  landlords in JH would rather keep stores empty if they can't get sky high rents because they can take it as a tax loss. Is there anything that can be done about this. It really keeps entrepreneurs and mom & pop stores out of the neighborhood. We will become a nabe of chain stores and I don't think that's what our population wants or needs. Can anyone shed light on why stores (especially restaurants and bars) can pop up in neighboring communities but seem to be shut out here. Yes I know we have many long standing restaurants but new ones seem to have a very tough time of it. Can we as a community do anything about this? Any insight appreciated.

[abcdefghijk]

I agree that this is particularly prevalent in our neighborhood.

(Commercial landlords preferring to wait for high paying tenants)

For instance, the stores in Greenpoint, Brooklyn are maybe half/two thirds the rent of those in Jackson Heights.

And this enables the mix of stores to be interesting.  From Polish to Artisan and everything in between.

The gossip I have heard is that the families who own the commercial property don't live in the neighborhood and so are not particularly interested in how the neighborhood fares.  It's simply a cash cow managed by agents.

What can be done?... that is a good question.

Maybe the city can be picketed to impose a tax on empty storefronts?

With the tax increasing the longer the store-front is empty.

...But in truth, that sort of a law sounds like it might be tough to pass.









 

[Stew]

I've said this before and I'll say it again.

It is very hard to explain the range of rent demands on 37th Avenue, some of which are self-evidently reasonable for the area and some of which rival the most expensive rents in Manhattan per square foot, as just the market at work.

[JHMNY]

Empty storefronts have been a problem in the neighborhood, but the specific row of long-standing empty storefronts at the Bruson Building drives me nuts each time I pass by.  I've always thought that if the community requested an update from the Bruson family, perhaps they'd be willing to oblige.  I know representatives of the family made an appearance at a town hall a while back, but it's due time for a status update. 

[newjhuser]

Bruunson building received the coa

[cultartist]

Here's a question--can some of these rules be changed by our own city council?  Can they be changed locally?  Can there be some kind of incentive program for new businesses and locally run companies and/or penalties and taxes for keeping storefronts vacant?  Is this something that can come from and be initiated by Danny Dromm and Jose Peralta?  It's hard to believe that vacant buildings and anonymous chains have to be such a big part of our very awesome neighborhood.

[Shelby2]

Empty storefronts have been a problem in the neighborhood, but the specific row of long-standing empty storefronts at the Bruson Building drives me nuts each time I pass by.  I've always thought that if the community requested an update from the Bruson family, perhaps they'd be willing to oblige.  I know representatives of the family made an appearance at a town hall a while back, but it's due time for a status update.

There was a bit of news about this just after you posted.  https://www.dnainfo.com/new-york/20170515/jackson-heights/bruson-building-reopening-jackson-heights-fire-37th-avenue

excerpt:
"With all of the paperwork out of the way, Bruno said they hope to begin signing leases with new tenants this summer. So far, the only confirmed tenant is Habib Bank, who opened their first Jackson Heights branch in the building in 1988. The owners said they're "accepting anyone who wants to look at the building" as prospective tenants, Bruno said."

[dssjh]

as a lifelong leftist/commie/agitator, i fall squarely into the camp of forcing evil landlords to do the bidding of the great unwashed like us. but can that really be put into action in an america on the current path?

[JHMNY]

There was a bit of news about this just after you posted.  https://www.dnainfo.com/new-york/20170515/jackson-heights/bruson-building-reopening-jackson-heights-fire-37th-avenue

excerpt:
"With all of the paperwork out of the way, Bruno said they hope to begin signing leases with new tenants this summer. So far, the only confirmed tenant is Habib Bank, who opened their first Jackson Heights branch in the building in 1988. The owners said they're "accepting anyone who wants to look at the building" as prospective tenants, Bruno said."

Thanks for the update, Shelby.  So, it appears that the delay was in obtaining a certificate of occupancy.  Keeping my fingers crossed that we'll get some interesting businesses setting up shop at the Bruson.

[queenskid2]

The last part of this story outlines some possible solutions to empty storefronts.

http://www.nydailynews.com/new-york/manhattan/vacant-stores-shuttered-venues-plague-once-vibrant-bleecker-st-article-1.3189582

[M7X7]

The report also includes a number of legislative solutions to address the problem. Among them would be the creation of a New York City Legacy Business Registry, implementation of retail zoning restrictions for chain stores, and phasing out of tax deductions for landlords with persistent vacancies.

Seems like the bolded would solve the problem on its own. The tax code making it more advantageous to keep an empty store than lower rents to attract tenants is what economists call a "perverse incentive." Reform that, and the market will naturally adapt prices to what people can actually pay.

[abcdefghijk]

The report also includes a number of legislative solutions to address the problem. Among them would be the creation of a New York City Legacy Business Registry, implementation of retail zoning restrictions for chain stores, and phasing out of tax deductions for landlords with persistent vacancies.

Seems like the bolded would solve the problem on its own. The tax code making it more advantageous to keep an empty store than lower rents to attract tenants is what economists call a "perverse incentive." Reform that, and the market will naturally adapt prices to what people can actually pay.

Agreed.

[Ed]

This is pretty interesting...

[Shelby2]

This is pretty interesting...

That is interesting. I always thought there was some sort of money making scam going on with the empty storefronts, but I thought it was limited to tax write-offs.

[M7X7]

This is pretty interesting...

For those who don't want to watch a video:

Landlord raises rent a lot, regardless of whether anyone is willing to pay (i.e. above true market value).
High rent is used to claim a (fake) high value for the building, despite it sitting empty.
High value for the building is used as collatoral for a bank loan.
Bank loan is used to make other investments.
Other investments apparently make enough profit to compensate for loan interest AND lost rental income, because the latter is a tax write off.

Result: landlord and bank win, community and taxpayer lose. And if the economy as a whole falters, the whole thing collapses.