The Great Neck News quotes Great Neck Chamber of Commerce President, Hooshang Nematzadeh (for the reasons store fronts are closing on Middle Neck Road) “The real problem is the cost of operating a business in Great Neck in Nassau County…A landlord has to pass those taxes to the tenant.”
My opinion differs somewhat from Mr. Nematzadeh.
I spoke to the owner of one of Middle Neck’s longest surviving business on Middle Neck Road. I asked the owner, “How is your landlord treating you in these difficult economic times?”.
He replied, “My landlord has treated me very fairly. He knows my business is down and he has lowered my rent three times in the past few years, even though my lease calls for a higher rent.”
Later, I spoke to another long time business owner on Middle Neck Road. He had a different story to tell me.
Store business No. 2 also had falling retail sales and his lease came up for renewal. The tenant asked for a lower rent and the landlord refused. The company was forced to move to another Middle Neck location (at a far better rental). It is over three years and the vacated storefront is still vacant. The loss of rental income greatly exceeded the income the landlord would have received had he abided by the tenant’s request.
The business moral of these examples is that taxes alone, I suspect, are not necessarily the reason for all these businesses failing on Middle Neck Road.
I suspect that in many, many cases the landlords are wealthy, have deep pockets care little about the community and far more about their investment.
And, in many cases, the landlords are stubborn beyond business sense. The worst part I believe is that the landlords are personally wealthy, own other, more profitable properties and they just don’t want to work with their tenants so the businesses survive.
As Shakespeare said, “The fault dear Brutus lies not in the stars but in ourselves.”
When Middle Neck landlords become more cooperative more businesses will survive.
Martin H. Sokol
Great Neck
