Empty Storefronts on Flatbush Ave

Too much rent. Leases are running out, and the old businesses can't pay the new, greed-fueled rents. Not many people can or will try, so these places are sitting empty. It's extraordinarily tough for mom and pops to stay afloat these days. That's why chains are now moving in.

Further down towards 5th on Flatbush, many of the empty stores and buildings are owned by Pintchik, and have been empty for a very long time. Ask them why. I suspect it has to do with speculation and the arena scam.

Just my opinion.

I also don't think Flatbush gets great foot traffic, considering the amount of vehicular traffic it has. I find it a very unpleasant place to walk and always cut over to another street ASAP. If I had a choice between Flatbush and Vanderbilt, I'd choose Vanderbilt as a place to open a business.

lovemynabe wrote: Just counted 11 empty storefronts on Flatbush Avenue between 5th Avenue and 8th Avenue. Is this a sign of a slow ecomony or is it that landlord are asking too much for rent?

Gentriblightification? Blightifigentrification?

nybt wrote: For frame of reference, what kinds of monthly rents are we talking about for these storefronts? New leases, that is- I'm wondering how greedy/stupid these owners are...

Rumor has it that Pintchik raised Mama Duke's rent 40% (from $5k to $7k).
linky

Ben wrote: Flatbush was also upzoned allowing for increased development on these sites. A number of the single story buildings that are vacant are for sale to developers and they are more attractive if they are vacant.

Bingo! That hit the nail on the head.

Interesting. That definitely makes a lot more sense than reducing your rental income to $0 by asking more than the tenants are willing to pay.

Candicissima wrote: [quote=StevieShamrocks] The only way this could turn out all right with me is if they open a 24 hour White Castle. Come on that would be just f'ing unreal!

Aren't there already 3 24-hour White Castles not too far away? :? (Not to imply I think one on Flatbush is an actual possibility...)

dude, that would RULE. crossing atlantic can be difficult. like, cars and stuff.

Candicissima wrote: [quote=StevieShamrocks] The only way this could turn out all right with me is if they open a 24 hour White Castle. Come on that would be just f'ing unreal!

Aren't there already 3 24-hour White Castles not too far away? :? (Not to imply I think one on Flatbush is an actual possibility...)

Do you suggest that I drink and drive?? I mean how else do you suggest I not wake up with a hangover? And how much would a White Castle next to my bar rock. I get goose bumps just thinking about it....

Most fast food restaurants also try to operate under the guise of cleanliness and charge more than .50 cents for a burger, but White Castle is not most fast food restaurants.

That said, I've never tried any of the White Castles in this area late night... though I, too, have been rejected from the McDonald's drive-thru for arriving on foot.

Does anyone think it's funny that White Castle's menu lists a single burger for 49 cents, 10 burgers for 4.90, and a sack of 100 for 49.00? I mean... maybe I'm not so business savvy as these guys, but... ahh... well... isn't that a bit redundant? Are those like suggested sizes or something?

This seems a good time to throw in an unsubstantiated rumor: The new condos between Prospect & 7th will host a Washington Mutual on the ground floor. Assuming, of course, that they finish construction before the end of the century.

There's a White Castle on Atlantic between Classon and Grand. It's open 24 hours, and far too many times than I wish to admit, I find myself at the Castle at 3 am, scarfing down five watery, baby food-soft burgers. So good going down. So...unfortunate in every other way.

sje wrote: Too much rent. Leases are running out, and the old businesses can't pay the new, greed-fueled rents. Not many people can or will try, so these places are sitting empty. It's extraordinarily tough for mom and pops to stay afloat these days. That's why chains are now moving in.

First of all what makes a rent request 'greed filled'???? If the market-rate rent is say $72 a sq ft (6000 mo for a 1k sq ft store) - and the current tenant doesnt want to pay it - why is it "greed filled" to wait for a tenant who will. I doubt anyone here making these comments would offer to work for less than the market rate salary for their position and I rarely see a 'buy-it-now' on ebay announcing that it is 30% below market for socially responsible reasons.....

The second point is this notion that chain stores can pay higher rent simply becasue they are chain stores. This is not true many if not most chain stores are franchises and must sink or swim on their own merits and few companies allow satellite stores to operate in the red for eternity so all these stores must make a profit at whatever rent level they are paying.
The reason is simple - they actually serve their customers - they are generally cleaner, more efficient and have better inventory and prices than the mom and pop stores and people flock to them. And think about it who would PREFER to shop at a chain vs a simarly run local store (answer=noone) -

The problem in reality isnt the 'greedy' landlords, it is the lazy, inefficient and unimaginitve local merchants who bitch, moan and complain but rarely invest, improve and modernize.

A perfect example I like to give is in Brooklyn Heights - Lassen and Hennings Deli has been there for ages and they run a clean, incredibly efficient store (they have portabe registers to move the lunchtime crowd) and they are always updating their selection. No national chain could ever match their flexibility, industriusness or their knowledge o the local market - and you no what they CRUSH anyone who tries.

friendlypitbull wrote: The problem in reality isnt the 'greedy' landlords, it is the lazy, inefficient and unimaginitve local merchants who bitch, moan and complain but rarely invest, improve and modernize.

A perfect example I like to give is in Brooklyn Heights - Lassen and Hennings Deli has been there for ages and they run a clean, incredibly efficient store (they have portabe registers to move the lunchtime crowd) and they are always updating their selection. No national chain could ever match their flexibility, industriusness or their knowledge o the local market - and you no what they CRUSH anyone who tries.

are you a business owner? like, a brick and mortar storefront type business owner? cause it seems to me you know zilch about running a business, or why it might be difficult, if not impossible, for a business to turn a profit when their rent increases exponentially.

Uh-oh...

It's another round of fisticuffs a-brewing between the free market capitalists and the more socialist bent.

:twisted:

sje wrote: I call making small businesses pay right now for an imagined and definitely not assured future "greed".

No one can "make" anyone pay anything and 'asking' for unrealistic rents isnt greed it is stupidity - if the LL projections are unreasonable then no one (chain store or mom and pop) will rent from him, and any increase will be rapidly eaten up by lost rent due to vacancy. I am not saying some LL dont have opptimistic assumptions but usually lost rent will make them see the light and if not we shouldnt castigate them we should pity their stupidity.

alafairnadia - no I do not own a storefront biz, but all biz most respond to competitive pressures and escalating costs, while maintaing focus on their market and satisfying customers.

That being said - commercial rents generally do not increase exponentially, most retail stores have long-term leases which keep the rents from escallating to quickly or at all) for a long period of time (15-20yr terms are not uncommon). -

Yes when the lease is over rents can increase huge amounts - but think about what that reflects - it means that the LL was getting LESS than the market rate and in the case of a rapidly gentrifiying area the merchant had exposure to higher spending (and probably increased density and traffic) all while paying the pre-gentrified rent.

and alafa I dont disagree that some biz cant make it in a post-gentrified world b/c the nature of the biz depends on low rents but in reality most of the biz forced out by high rents are just replaced by the same type of biz that due to service/selection or efficiency can operate at higher margin (restaurants, drug stores, bodegas, etc...) NO reason why an existing biz cant adapt and when they dont they shouldnt expect to be subsidized by LL.