So many towns around Long Island are suffering from the “empty store syndrome.” How are the local governments and politicians addressing this issue? Some are being proactive and rebuilding their downtowns first through discussion and brainstorming to see how to have the town become more vibrant and successful, so businesses will thrive and stay put instead of closing and to also keep the younger generation staying local.
I remember years ago when a town lost a movie theater, you might lose a town or at least the incoming pedestrian traffic, which is what every town and business strives for and needs to get to survive in today’s economic environment. However, over the years, with a multitude of towns offering summer concerts, (Great Neck, Manhasset, Port Washington, Westbury, Massapequa, and many others), as well as flea markets in Westbury, Wantagh, Massapequa, Garden City, Rockville Centre, Long Beach, and others, although towns might still be struggling with empty stores, the summer concerts are aiding in bringing out homeowners and renters.
However, I am not sure whether this is helping the shopping districts in the downtowns and I haven’t seen any statistics showing whether or not this has been a plus or a minus. Why aren’t local mayors having regular scheduled meetings with landlords, realtors, and the public to create a dialogue and conversation to ascertain and brainstorm and come up with creative ideas by thinking outside of the box to figure out how and what types of businesses would work in those stores and to figure out and determine what services that are not easily attained via the internet and to be able to promote and attract walk-in traffic. My professional opinion is that one of the most important things that always seems is to bring in various types of entertainment on a more permanent basis for adults and children, especially during the fall, late fall and winter months, when there are always fewer people walking around or window shopping.
There is nothing as comparable and enjoyable as live entertainment that you can participate in as opposed to viewing it online. When Millie’s restaurant in Great Neck Plaza was the main “go-to” venue and the place to be, that everyone came to hang out in and enjoy the delicious and varied menu. I vaguely remember Friday and Saturday nights, that there was entertainment (Mr. Howard, my junior high school music teacher played there a few times). Millie’s attracted people from far and near and the locals of Great Neck and made the town a shopping destination with much greater activity, with the buzz and chatter on the streets and nightlife, w/the Georgetown Mews disco club downstairs on Bond St (that we haven’t seen that kind of activity in many, many years). The draw to come to the Plaza was also due to the varied stores and merchandise throughout the town for those to leisurely shop. However, that was then and now things have drastically been altered by internet shopping over the last 2 decades and the public’s attitude about supporting their own towns; call it apathy, laziness or cost-cutting or whatever the reasons.
It begins from the top down. Taxes on commercial properties are way too high, there are landlords that would rather leave their stores empty than lower their rents to attract business, and, of course, there are some greedy landlords that want what they want. Everything is about price, but how can a new business survive and grow roots in a community if they cannot survive past the first year.
Real Estate taxes, the price of homes and doing business in New York State reached a point of no return and are continuing to force more people out of the area than are coming in, so what can be done about this sad fact? Is what New York City is trying to do, by taxing the landlords if they leave their storefronts empty a possible future antidote and solution to our problem? I know of one storefront that has been vacant for almost 6 years and I calculate that the landlord has probably lost over $500,000 even if a reasonable rent were to be charged, plus the real estate taxes still have to be paid. Correct? So what has that landlord gained, other than an empty storefront and whatever savings were supposedly gained? But did they get back a half a million dollars in rent? Absolutely not!!! If landlords are getting special tax breaks, why should they if their price per foot is way too high and they are pricing potential tenants out of the market to make a living. Yes, I know their real estate taxes are high, but is an empty storefront better than one that is rented? At some point in time, most of us may earn less and other times earn more, so why can’t some landlords understand that concept too?
To add insult to injury, the Coronavirus isn’t helping either, making consumers concerned with going out and shopping, touching things even shaking hands with others, surely not the most advantageous environment or atmosphere for retailers! I sold my two stores on Bond Street almost two years ago and has been sitting empty 20 months while the value has continued to decrease. The current effect on local real estate values has and is being felt all over Long Island and the tax increases going forward will have a detrimental impact on homeowners who might be retired or still working but who can no longer shoulder the burden for all those vacant stores.
This is where a village and/or a town needs to step in and have regular discussions with the landlords, realtors and the owners of homes, condos, and co-ops – and maybe tenants too – within each community to get input and new ideas leading to some solutions to fill up those ugly vacant stores!
Local governments and their constituents need to be much more involved, even going around from business to business regularly, to take a survey and search for some new ideas and to let business see that there is some concern, not just when an election is nearing and they want their vote (assuming they are registered voters and live within that village). Also, when is the last time a merchant swept their sidewalk in front of their business, let alone receive a ticket for not doing so? Most of us usually clean our homes, cut our lawns and keep our properties tidy, right? So why shouldn’t the merchants and/or landlords be responsible for doing this or be subject to fines, just like we all receive when we park overtime!
Much more involvement can and will solve problems if local officials care enough, or maybe a blood transfusion needs to take out the old and put in the new to make every attempt to improve the local environment! Nobody cares how much you know until they know how much you care! Does anyone care??? Those who are tired of stale solutions that create more problems should make their voices heard by electing local officials who will work to change what does and has not worked.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). Just email or snail mail (regular mail) him with your ideas on future columns with your name, email and cell number and he will call or email you back. For a consultation, he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com to answer any of your questions or concerns.
