Given New York’s place as one of the world’s premier shopping, dining and entertainment destinations, the city’s retail landscape is constantly evolving to respond to supply/demand trends and other market forces.
Today, as retailers and landlords alike adapt with the impact of eCommerce and other shifts, concerns have been raised by residents and city leaders about increasing storefront vacancies.
In an Op-Ed piece published this week in Crain’s New York Business, Cushman & Wakefield’s Joanne Podell and Steve Soutendijk contend that proposed solutions to decrease retail vacancy by levying additional taxes on landlords – while well-intentioned – are ultimately misguided and unnecessary.
The solution, Podell and Soutendijk argue, is to allow the market to self-correct. To wit, after a period of rapidly rising rents during the first half of this decade, landlords have retracted in recent years and have also become more flexible with concessions and incentives when needed. As a result, deal velocity is up and vacancies in many once-challenged sub-markets have fallen precipitously. The same will no doubt occur in other slower-to-adapt markets as time goes on.
When the marketplace is permitted to function, it facilitates success across the board — for retailers, landlords, residents, visitors and the city as a whole.
To read the full Op-Ed in Crain’s New York Business, CLICK HERE.
Joanne Podell has more than twenty years of commercial real estate experience, specializing in both tenant and landlord representation, and lease negotiations throughout Manhattan. She has been involved in many of Manhattan’s most prestigious retail assignments and handles site acquisition and strategic disposition for many well known national and international tenants.
Steven A. Soutendijk joined Cushman & Wakefield Retail Services in 2004. Mr. Soutendijk represents many of Manhattan’s most prominent property owners, and has been instrumental in arranging transactions involving some of New York’s most recognizable retailers.