SoHo’s (NYC) Soaring Rents Keep Storefronts Empty

1 Reply

Interesting article about commercial spaces for lease in NYC's SoHo neighborhood.

Rents have skyrocketed to the point where it doesn't really make sense for a retailer to open there unless they want a "flagship" location to be used for branding . This has also changed the feel of the neighborhood from being more boutique type of businesses to more multinational chains opening there .

Also many that bought properties more recently on speculation could be in trouble as they bought on the expectation that rents would continue to rise even higher

"But building owners who purchased their properties in recent years with the expectation that rents could only continue to rise may be in a bind. To secure financing, they would have to project a certain level of income, and if they accept less than that, they run the risk of being in default, or having their lender require them to put more equity into the building. At some point, Mr. LaPierre said, those owners will lose their buildings or have to find a partner willing to invest money in the property."

https://mobile.nytimes.com/2017/08/23/nyregion/soho-empty-storefronts.html?referer=https://www.google.com/

I work in Soho and I have been seeing that trend. There are some properties with the For Sale sign up and some with For Rent. But within the last year I have seen more and more businesses closing their doors or relocating from Soho.