NYC Retail Climate - A Focus on Smaller Outlets
Hal Shapiro, of Scarsdale, NY, has nearly two decades of experience in the real estate industry. Scarsdale, NY resident Hal Shapiro has completed transactions for JP Morgan Chase, Dunkin Donuts, and other notable businesses. While the big deals are very important in the NYC commercial real estate, the tides are changing for smaller retail outfits typically faced with increasing rents and competition from larger businesses. An influencing factor in this change relates to landlords who typically lease to corporate retail establishments but find getting past regulatory hurdles difficult. As opposed to letting a building sit empty on the market, landlords are splitting up retail spaces that are between 8,000 and 15,000 square feet into smaller spaces that are between 3,000 and 5,000 spaces to accommodate smaller businesses. However, smaller retail outfits might also get relief from local governments. In Brooklyn, a place characterized by the mom and pop store, the council has introduced a bill that would revolutionize how commercial (including retail) rents are determined. This regulation focuses on rental space that is under a certain number of square feet (retail space under 10,000). Similar to apartment rent stabilization, this bill comes at a time when local shops suffer from rising rents, competition from online businesses, and red tape, among other forces. Factors influencing just how much renters would pay to include economic condition of the neighborhood, sewer and water rates, commercial real estate taxes, and operating (gross) and maintenance costs.






