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Analysis: landlords often keep rents high even where storefront vacancy is high, study finds
Summary
Small Business United and City Limits analysis of comptroller data found that in many New York City corridors, property owners keep asking rents high despite elevated vacancy rates; Whitney Hu said landlords appear to wait for higher-paying tenants rather than lower rents to re-lease units.
Whitney Hu of Small Business United told BronxTalk listeners that their analysis of comptroller data showed an unexpected pattern: "typically, you think high vacancy would mean that property owners would lower the rent... Instead, what we're seeing is that that is not true. They are instead keeping the rents pretty high." She added that many storefronts sit empty for nine months or longer.
Hu cited a striking borough example: "1 in 5 storefronts in Manhattan are vacant," and said that in neighborhoods with high vacancy the effect can cascade, depressing foot traffic and harming other nearby businesses. Host Gary provided Bronx neighborhood numbers from the same data, noting higher local rates in places such as the Hutch Metro Center (12.9%) and lower but noticeable rates in Mount Hope, Westchester Square, Riverdale and West Farms (read as 8.3% and 8.2% in the program).
Jean Marie Evely reinforced the neighborhood effects, saying vacancies "obviously doesn't look as great. It's less foot traffic, and that impacts other businesses nearby," and observed that long-term empty storefronts can alter a corridor's character and reduce local jobs and services.
