Jackson Heights Life

Yes I am well aware of the scam that's going on now re: store rents.

But like all scams that have no real basis... It will eventually collapse.

Either thro legislation or the tipping point of sheer numbers of vacant store fronts.

Eventually the city will notice! And take action with some new laws.

It may take 5 to 7 years. Maybe more. Perhaps less.

But it will happen. All bubbles burst. Including store rents. A person never knows when the bubble will burst, that's all.

I look forward to the creativity of what folks will do re: the retail world in the future.

abcdefghik...I don't know if you saw the link to the explanation of why the landlords are doing what they are doing. They can borrow against the inflated value of their property--that is based on the extremely high rents--and then they invest the proceeds, make money off it,

abcdefghik...I don't know if you saw the link to the explanation of why the landlords are doing what they are doing. They can borrow against the inflated value of their property--that is based on the extremely high rents--and then they invest the proceeds, make money off it, and ALSO get a tax deduction from the unrented property. With that going on, I don't see why rents would go down--they are making more money by leaving the space unrented. And this is going on all over the city and is the reason you see so many empty storefront everywhere, notably in the Village and even on the Upper East Side. Many, many empty storefronts.

Quote from: ljr on August 01, 2017, 09:30:40 PM

There is Whole Foods, there is Trader Joe's, there is Fresh Direct--huge companies that can operate with many efficiencies due to size. I think it's very unrealistic to think someone can open a Mom and Pop type store in JH with its notoriously outrageous retail rents and somehow compete with huge chain stores for the same business selling foods in bulk. There are already numerous options for that. We have a few small food stores that cater to a specific demographic, but even those seem to struggle. It's very very very hard to make a go of a small retail store in NYC--is my impression anyway. And only getting harder and harder.

I believe the market finds its own level.

In other words, since everyone is buying online and in big stores due to cost savings, eventually the rent for small stores has to go down.  Because there is no way a small business can pay big rent.  Folks simply aren't buying from small stores like they used to.

Thus small stores spaces won't be worth renting. And EVENTUALLY even the landlords will have to swallow that fact.  And the small store rents will come tumbling down.

It may take 4 to 7 years (and there'll be a lot of empty storefronts for a couple of years) but my guess is that it will happen.

Interesting, idiosyncratic stores are definitely going to occur in the future...once the current rent structure collapses... and store-owners can afford to experiment.

Disagree. Prices going up ensures only chain stores can afford to be there. Mom and PoPs and independent anything won't have a chance.

I think one of those color me mine type pottery stores would do really well here! It's usually pay by the hour where kids and adults buy a piece of unfinished pottery (a mug, vase...etc) and paint it. It gets cooked in a kiln and picked up a few days later. Kids love doing it on a normal day but it's also a great spot for birthday parties and I know some places that allow a byob in the evenings. The profit margin is pretty good and with al the families moving to jackson heights, I think it would be very successful.

People spend $ on an experience now.  Coffee, food, cocktails,  gyms, wellness.  I also think a gym would work reallly well, especually something niche like crossfit, grace jiu jitsu, kickboxing.  You do not need a lpt of space for these types of gyms, nor a lot of overhead.    If you are unwilling to do food or drinks or welllnes, that leaves retail. I cannot imagine competing against amazon in anything retail.

I've been tossing around a pipe dream of just this and I'm convinced it will do well. As things become more digital and automated, people will be needing and craving more organic human experiences. I totally agree with @MAngo, you don't need a lot of space for a rotation of fitness classes, wellness center (reiki, massage, etc) and simple health drinks, etc. Lots of these are available in Brooklyn and it's high time to get some more of these upgraded businesses into JAckson Heights! YOu don't need a large space if the space can be thoughtfully laid and shared, by time slots, and even have guest speakers in the evening to draw in crowds... I would LOOOVE this in JH!!

People have clamored for a full-service gym for years here. Small, creative stores, such as a boutique clothing store, have not been able to survive here. Few retail business seem to work out because of ridiculously high retail rents. What seems to work in Brooklyn does not work here--for the above reason and no other reason that anyone has been able to prove. Interestingly, I am in the UK at the moment and noticed a lot of empty storefronts--and when I inquired, I was told the same story: the rents are insanely high and only chain stores can afford them. Period. So to those who are coming up with quirky, interesting ideas for a retail business here in JH: dream on.

I agree with ljr. There's no need for people to get up hopes which would surely be dashed because the banks have structured real estate financing essentially as a scam on neighborhoods. This doesn't actually come down to the landlords themselves - the 'secret' is that it's 100% about the banks. (Although I still think that in certain parts of the neighborhood, people from certain areas get preferential rents ... which is good because it keeps the renowned ethnic character of Jackson Heights. But we're not really talking about 73rd Street in this tread.)

As abcd says, it's going to take at least five more years before we see that bubble pop or anything change, especially because the current state and federal governments aren't about to do anything about unhealthy bank policies. Let's make the best of what we have and try to vote for leaders who are willing to take a big hatpin to the banks.