A Daily News article reports that many small local businesses are starting to close down because of rent increases. On the list are some of the pioneer better establishments such as Mobay and Harlem Lanes which are slated to close this week apparently. Most of the businesses in question appear to be around the 125th Street corridor where big retailers are showing interests. The article subtly makes a dramatic point that rents will go up higher in Harlem than neighborhoods such as Chelsea but this seems to be all about the 125th Street corridor which is more like the Times Square of Harlem. As with any developing neighborhood, rents increase drastically after leases expire (usually after 10 years) and many businesses can not keep up with the cost of the neighborhood. Read more in the Daily News:
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Harlem has always had a lot of upside, that upside is now starting to be realized in retail rent. I will not be sorry to see the hair braiding, bling and wig stores go, but sorry to hear Melbas is suffering as the owner and staff where always really nice. Unfortunately, the big chains have the resources to pay these rents, making 125th more of a times square. However, the most successful businesses have been independent non chains, like Red Rooster or Corner Social, which is good news for Harlem.
ReplyDeleteThe trend is not just in Harlem but all over the city.
ReplyDeleteDamn, I am going to really miss Harlem Lanes.
ReplyDeleteWithout a business next door to provide foot traffic they didn't have much of a chance.
Mobay's is more of a surprise to me as they always seemed busy during the after work hours.
I just read that Posh Paws is closing.
ReplyDeleteIt is all well and good that property owners think they are seeing a way to raise rents but I hope that their eyes are not bigger than their stomachs and these spots stay empty for extended periods of time. We need vibrant active spots not empty vanity spots.
ReplyDeletei totally agree with you! once the lease expires, it's the wild west w/ regards to the landlords and their huge rent increases. few sm biz can offset the increase...there isnt suddenly an increase of new customers because the rent increases. landlords overall are greedy and it's really a shame to see a decent sm biz close
DeleteAgreed
DeleteTotally. There are plenty of spaces that have been empty in the 125th St area for quite a while. I keep wondering if maybe they're expecting too much...
DeleteFor the landlord it is a business decision, either hold out for the best tenant or sign a lease with a lower paying tenant. It must be a difficult decision in a changing neighborhood like Harlem.
DeleteA la West Broadway with huge rents and stores that open and close. And West 8th Street that has been a ghost strip. There is huge foot traffic on 125 but not a lot of folks who look like they have deep pockets.
ReplyDeleteThis is the first I'd heard about Mobay closing. Sad to hear it. Maybe I better check it out tonight :/
ReplyDeleteHarlem Tavern, Corner Social, Red Rooster, etc. are packed all the time. 125th St. can certainly support more places like that. Applebee's is also very busy. Foot traffic isn't going to be a problem for the right business model.
ReplyDeleteAs for the existing vacants - these are not competition or alternatives vis a vis the existing leases. The existing vacants are just vacant buildings. Nobody seems like they're even trying to rent them out. No doubt many owners are instead opting to keep them vacant to sell as development sites.
Whether it is good that retail rents are rising along the corridor, whether Mobay's, etc. should be somehow sheltered from it - that's another issue, and not my point here. But for the right business plan there will be a customer base if a new business comes in.
Coopster, your point is of course valid, but i have lived in NYC long enough to know that many landlords cut off their noses to spite their faces. They have a perfectly good tenant but because they hear that a building across the street has signed a much more lucrative deal they think they can simply raise the rent 5 fold. Then the space stays empty for years.
ReplyDeleteThis then cause blight on the neighbourhood. Harlem is not at that point where when one goes another one comes in short order.
Completely agree.
DeleteAnd the landlord often LOSES money when you factor in legal fees, realtor fees, construction, months vacant.
Again, this is a worrying trend throughout the city, not just Harlem. NYC is slowly becoming like everycity USA. The same stores you find in the Cleveland suburbs, you can find in the middle of midtown. They are the only ones that can finance the rents. It's a serious problem but in our run away capitalist system, that's what happens.
ReplyDelete