Can the so-called “green shoots” really fix our economy? And will landlords demand less green?
Now that tent cities are out of fashion — or at least consigned to unfashionable places like Sacramento — the surest sign of hard times is shuttered stores. There are the glaring examples, like the Union Square building that chose as its anchor tenants Virgin Megastore and Circuit City (whoops!), but the rows of rolled-down gates are visible in every neighborhood: Entire blogs are now devoted to chronicling the devastation, and wondering where to turn for their free-WiFi fix.
Free-market economics tells us this sort of thing should work itself out: Landlords lower the rents they jacked up during the boom years, stores get out of the red and everybody can go back to drinking their lattes in peace. Of course, if free-market capitalism worked the way it’s supposed to, we wouldn’t be in this mess in the first place.
“Commercial rents may not be rising at the same rate, but they certainly aren’t falling,” says Catherine Bohne, owner of Brooklyn’s Community Bookstore and VP of the Park Slope Civic Council. Just last week, she says, she spoke to the owner of a local restaurant she thought of as “wildly successful” and was told if the owner can’t renegotiate her rent, she’ll have to move or close.
So what to do? The city council is considering a bill to limit commercial rent hikes and force landlords to go to arbitration, but that would mostly be useful for when the boom times return.
Bohne would also like to see laws allowing shopkeepers to buy their storefronts as co-ops without having to scrape together millions for an entire building: “At this point you’re sort of an idiot for opening a small business, unless you own property. Small stores invest $50,000 in renovating, and if you lose your lease, that’s gone.”
Until then, we have the commercial parallel to empty condo towers with homeless camped outside: acres of empty storefronts, and nowhere to work or shop. If the economy’s ever going to recover with the help of those “green shoots” we keep hearing about, it’d be nice if landlords demanded less green.
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