Retailers around the world are struggling as online shopping rises in popularity, and Manhattan is no exception to this trend. A recent survey from Douglas Elliman found that 20 percent of the storefronts in Manhattan are vacant. This compares to a similar 2016 report from the brokerage when it was just 7 percent vacant. This information lines up with other studies as last year, Gale Brewer, the borough president, completed a study discovering that just on Broadway Avenue, there were 188 empty stores.

No Single Explanation

Owners of brick-and-mortar stores around the world can take heart in the fact that they are not alone if they are struggling or facing declining sales, particularly if an area like Manhattan is experiencing a similar problem. The issue, however, is determining the specific cause of the increase in store vacancy. Different people, both experts and store owners, have varying explanations.

Smaller family-owned shops point to landlords as the problem, saying that they keep on raising the rent. They feel that the landlords are hoping that zoning changes will arrive to entice developers, or they are holding out for corporate chains that can pay the higher rates. Landlords, however, argue that they are flexible with rent, even willing to go below market rates at times. They say the problem is that tenants do not want to sign a long-term lease due to market uncertainties. Yet others point to the opening of new retail spaces that makes existing properties less desirable.

Manhattan Is Not Alone

This trend of store closures is not just in Manhattan. Other areas in New York City are experiencing a similar phenomenon, including in places that always had full occupancy in previous years. Even so, many stores are holding out and continuing to do well. Those who want to stay in business can look at successful retailers for strategies on how to stay in the retail game.

Source:

https://therealdeal.com/2018/09/09/why-one-fifth-of-manhattan-storefronts-are-vacant/#

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