Amid Coronavirus Shutdowns, Landlords Often Determine Fate of Small Businesses. the Wall Street Journal reported 6/4/20, focusing on a stretch of Fifth Avenue in Park Slope, not far from the Barclays Center.
The bottom line: landlords who bought buildings more recently, at high valuations and with expensive loans to pay off, are--no surprise--more reluctant to give a break to small business battered by the pandemic.
Though some have struggled "using government assistance, online sales and, in the case of restaurants, takeout and delivery," the recent protests--leading to some damage and boarding-up of retail--and curfew sure haven't helped.
Trouble is coming:
The best positioned tenants rent from the Pintchik family, which owns the eponymous hardware store and some 60 commercial spaces and--crucially--acquired the buildings years ago:
The bottom line: landlords who bought buildings more recently, at high valuations and with expensive loans to pay off, are--no surprise--more reluctant to give a break to small business battered by the pandemic.
Though some have struggled "using government assistance, online sales and, in the case of restaurants, takeout and delivery," the recent protests--leading to some damage and boarding-up of retail--and curfew sure haven't helped.
What next?Just went on a bike ride in the vicinity of Barclays pic.twitter.com/gAKwBEUIGx— Seth Pollack (@sethmpk) June 3, 2020
Trouble is coming:
A survey of 46 of the Fifth Avenue businesses along the strip from Barclays Center to 18th Street found that only 17% paid rent in May, down from 53% in April, according to the Park Slope Fifth Avenue Business Improvement District. Retailers are able to do that partly because New York Gov. Andrew Cuomo has imposed a moratorium on evictions through August.That means "for-lease" signs are beginning to appear on the 30-block strip.
The best positioned tenants rent from the Pintchik family, which owns the eponymous hardware store and some 60 commercial spaces and--crucially--acquired the buildings years ago:
Michael Pintchik, who heads his family's operations, said he has lowered some tenants' rents and is looking to be "fair and considerate" given the distress people are under. "There has to be a sharing of the pain," he said.
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