Posted on 08/11/2020 3:26:31 PM PDT by Mount Athos
In the heart of Manhattan, national chains including J.C. Penney, Kate Spade, Subway and Le Pain Quotidien have shuttered branches for good. Many other large brands, like Victoria’s Secret and the Gap, have kept their high-profile locations closed in Manhattan, while reopening in other states.
Michael Weinstein, the chief executive of Ark Restaurants, said he will never open another restaurant in New York.
Of Ark Restaurants’ five Manhattan restaurants, only two have reopened, while its properties in Florida — where the virus is far worse — have expanded outdoor seating with tents and tables into their parking lots, serving almost as many guests as they had indoors.
“There’s no reason to do business in New York,” Mr. Weinstein said. “I can do the same volume in Florida in the same square feet as I would have in New York, with my expenses being much less.”
In Manhattan’s major retail corridors, from SoHo to Fifth Avenue to Madison Avenue, once packed sidewalks are now nearly empty. A fraction of the usual army of office workers goes into work every day, and many wealthy residents have left the city for second homes.
Some popular chains, like Shake Shack and Chipotle, report that their stores in New York were performing worse than others elsewhere, investment analysts said. A few dozen Subway locations have closed in New York City in recent months.
A Gap Store near Rockefeller Center has stayed closed and has not paid its $264,000 monthly rent. Two T.G.I. Friday’s in prime locations, one near Rockefeller Center and another in Times Square, have remained closed while its restaurants elsewhere in the country have reopened.
Landlords have started filing lawsuits against commercial tenants for not paying rent, accusing some national brands of trying to take advantage of the crisis.
(Excerpt) Read more at nytimes.com ...
Couple that outrageous rent with insurance premiums and rich taxes and, yeah, why spend so much for a “prestigious” location when the government is showing it does the bidding of any mob of the day and will shut it down for any excuse.
A realtor friend of mine emailed me a link to the insite/future of the real estate market from industry insiders.
The greatest migration in human history is going to happen in the next few years from large cities to small towns. Suburbs are going to be bypassed straight to rural America.
Rural America was devastated the last 30 years now it is going to be reborn.
After the dust clears, the Trump businesses will still be there. A.K.A. DeBlasio, not so much.
Seattle, Portland and Chicago soon to follow.
The store has to be doing three million a month in sales to even pay rent. Is that possible?
Read the article...Victoria’s Secret is $964,000 per month. Or something near that.
I said this was going to happen. Plus you have the stoopid rioters destroying everything.
No business person would ever return to a situation out of control.
I think you have a point. The grand strategy is to make life and business in NY so untenable that it drives even the lowest of democrat scum out into the hinterlands to contaminate what’s left of America.
The usual fake news generators, cnnnbcmsnbcwaponyt . . . And Cuomo said so. Oh, and Fauci said NY had the best response. I guess he considers body count to be a favorable statistic.
My buddy’s wife was the regional manager of Victoria’s Secret.
I was like “you lucky bastard”
Look at it this way.
A million in rent Victorias Secret was paying was not rent but advertising. As said millions of people from around the world went into that store each year to see the latest merchandise up close. and then went home to their local store or bought it online.
But the views! The Shopping! The Shows. Oh, never mind.
I hope you are right. These big cities as they are now must be destroyed.
“The store has to be doing three million a month in sales to even pay rent. Is that possible?”
See my post #52
Call me when 10 or more “protestors” die for each store burned.
I just might give a millish*t.
Before they closed The Four Seasons was paying rent of over $3 Million a year.
Those who work in the retail business could tell you exactly how many other stores were carrying their flagship location in Manhattan. It didn't matter if it was 10, 20, or 50. They had to be a "big name" store and had another 300-600 stores stateside and others overseas to offset the losses against.
As sales and advertising move more on-line, pretending you have a great successful business that could "make it" in New York City, London, or Tokyo is becoming less of a selling point.
I used to work for a nation-side car rental company. We made money everywhere else, but lost money in New york, boston, chicago, Liz angeles. But you’re not a nationwide chain if you are not everywhere in the nation.
The job in the big cities was to minimize losses. Probably still the same way today.
$264,000 monthly rent for a Gap Store?
I don’t care if your business model is selling cheape Chinese torn jeans to stupid kids for $125.00....
You cannot sustain that.
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