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Deadly Sin of Real Estate - Greed!

By
Real Estate Agent

"Don't it always seem to go that you dont know what you've got til it's gone....

Four years ago, I posted a blog on activerain titled Say No to Drugs Store Chains when I discovered that all the stores on my block were being forced to close. First The Malaysia Grill at the corner then the next day I discovered the Korean family that owned my local produce 24 hour grocery store was packing up and leaving after 15 years because the landlord wouldn't renew their lease. The new landlord who just inherited the building probably thought he could do better with a big box retailer.

Broadway between 87th & 8th Street 7/07

My block 87th/88th Street and Broadway prior to 7/3/2007

87th/88th Broadway

My block after July 3, 2007 and how it looked for about 2 years after.

87/88th Brodway

They gutted the place and put in new windows, It remained this way for another two years.

snowstorm

Poor real estate broker responsible for shoveling snow from sidewalk in front of vacant storeront.

Ricky's

Finally a new store opens, Ricky's they sell haircare beauty supplies, shampoo, pop rocks and purple and orange wigs. When they first opened, I was walking past the store with a client who has lived in the neighborhood a long time. I sold him a beautiful prewar apartment on West 86th Street 5 years ago and 10 years ago a rental on West 73rd Street. They're looking again for a higher floor with outdoor space.

We were joking how long the store would last. I said: "I give them 6 months" My friend and client said: Longer because Ricky's is a chain-they have a store on 72nd and Columbus so they can go without customers longer. We laughed although I said: There is a big diference between 72nd and Columbus and 87th and Broadway. We shall see.

87/88th new store

Then right before Labor Day, the last week of August (99 degrees) a Japanese Gap type store with the slogan The "jewel of textiles," with the ultimate in softness opened with fake snow in the window selling high tech parkas and jeans and spandexy looking tea shirts.

japaneese Gap

Oh well they didn't even last 1 month, Vacant storefront again. To this day I have not found better produce than from The Korean grocer. The bakery moved up the street a block, Ray's pizza is gone and the Chicken take out is gone.

"Don't it always seem to go that you dont know what you've got til it's gone.... (Joni Mitchell)

"Bulls make money...Bears make money... Pigs get slaughtered" (Jim Cramer)

"A bird in the hand is worth two in the bush" (proverb)

At this point I wouldn't even mind another drugstore or bank. At least the drugstores sell overpriced milk and toilet paper and the banks have ATM machnes.


Call Mitchell Hall, Associate Broker

The Corcoran Group

Luxury Manhattan Real Estate

 

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Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Mitchell, nice post with the hisptical photos!....You live in a different world my friend!  Regards from Ann Arbor, MI

Oct 02, 2011 01:44 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Mitchell, A real shame the mom and pop places disappeared.  Commerical real estate activity is a good barometer of the local economy.  After years of almost nothing, we're finally seeing the local activity pick up.  It's all national chain type things (Chipotle, Dairy Queen, etc.), but the fact they've run their numbers and see an opportunity present is a good sign that things are heading in the right direction.

Oct 02, 2011 01:50 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

How true.  It is so sad to see the small mom & pop operations being pushed aside for generic bland big box stores.  Nice before and after photos of what could happen when you think bigger is better.

 

Oct 02, 2011 01:53 AM
Monika Depalo
GAFF'S REFERRAL'S INC. - Port Orange, FL
REAL ESTATE Agent/Stager

It is now a new world or different world depending how you look at it.

It is interesting and entertaining and you WILL have stories to tell your kids. I never heard of a JAPANESE GAP? hmmm...Keep me posted on the next store that goes in there. In Florida, it is liquor and dollar stores that are building like crazy and I'm not sure which one the shoppers hit first.  By hit, I do not mean rob although they do that do too since they are desparate they shoot people in the back at ATM's or steal on foot since they are carless.  Over here, they are stealing packages just delivered to front steps and walking around with a backpack and no get away car so no license plate to trace.

The skill humans have is ADAPTATION but it takes patience.

Good things are worth waiting for--add that one to your list and can the negative ones.

Negative thinking will get you no where---just be entertained and SEE WHAT "DOES" work and what "DOESN"T".  Did you notice that malls too are under reoriganization and new malls are the outlet not all connected by a common roof?

Things change--EMBRACE change.  You will live longer and more stress tree.

Go work on the other side of town for awhile to add to your territory and get a new perspective and appreciation.  Maybe join a neighborhood revitalization program. 

Just curious, what kind of shops do you think would go well in there?

Do you have a commercial designation yet?

 

Oct 02, 2011 02:07 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

While the pundits expound on the benefits of small business in the USA, the reality is far different.   Especially with the greed factor.

Oct 02, 2011 02:12 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Hi Kathy, Thanks for the comment. Have a great Sunday!

Hi Liz and Bill, I agree but sometimes the big chain goes out and a mom and pop replaces them. On another block near me Godiva chocolates just closed. The sign in the window "coming Fall Baked by Melissa". www.facebook.com/bakedbymelissa.

Looks mom and pop homemade and delicious. (high rent district hope she makes it)

baked by Mellissa

Oct 02, 2011 03:42 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Hi Cindy, Thanks, bigger is not always better.

Hi Monika,

"Good things are worth waiting for--add that one to your list and can the negative ones."

That may be true but if you wait too long you lose. It is not negative or positive it's smart businees. The landlord will never make up the lost revenue from having vacant space for four yeears no matter how much of an increase in rent.

After I wrote the first blog 4 years ago, I was contacted. The owner/landlord is a dentist in New Jersey who inherited the building. He is a nephew of one of the Zabars. They own a famous a food emporium as well as blocks of real estate on UWS. 

I was told they will not rent to a food store because of Zabars. Food stores always do well here. 71% of consumer's surveyed on our corcoran.com website said the one store they would want on their block is Whole Foods. The next closest at 11% was Barnes & Noble.

Ricky's will probably survive. They sell wigs and the UWS in the West 80's has a large Orthodox Jewish population. I've never seen a purple "sheitel" but the Upper West Side is a modern orthodox neighborhood so you never know ,-) Last summer a Kosher Japanese steakhouse opened on 85th & Broadway and there are crowds every night.

We don't do designations in Manhattan. Either you're a salesperson or a broker. I'm a broker in residential real estate but what's in a neighborhood is very important for residential sales. Location, location, location. I certainly don't stress over it. It's entertainment and blog material.

Hi Gabe, Exactly, It's easy to preach rather than practice what you preach.

Oct 02, 2011 04:13 AM
Chris Alston
Chris Alston (Keller Williams Realty, Silicon Valley, California) - Campbell, CA
Silicon Valley, California

What an interesting read...  I wonder if the owner is in the hole the last few years just due to the rent loss.  I bet you miss the grocer!

Oct 02, 2011 05:36 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Hi Chris, I miss the grocer. They were always open. I would think the owner is in the hole. Who knows maybe he needs a write off or the rent from the apartments above cover all the expenses. I don't think bigger is always better. Look what happened to bigger couldn't even last a month. IMHO it's better to have 5 clients/tenants than one or 2 big ones. I rather have 5 $1million dollar listings or 5 $1millon buyers than one $5 million listing/buyer because if that one doesn't buy or sell you have nothing.

Oct 02, 2011 07:41 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mitchell,

Love your post, and it reminds me of some of the issues we faced in commercial real estate.  There were so many building owners that were shortsighted and did not understand what make a neighborhood.  The stores have to be useful to the residents and the people who work around the buildings.  We had a listing in the Golden Triangle in Beverly Hills, on the street that was medical space. 

Two agents had failed miserably not because they were not compertent, but because the owner wanted high end retail.  We took the listing on the condition that he would give us free rein.  He agreed after 2 years of more that 10,000 square feet of retail on the market.  We canvassed everyone in the building and asked what they wanted and needed.  Within 6 months, we were finished.  We leased space to a hairdresser, a shoe store that specialized in walking shoes, a small coffee store, etc.  They thrived based on the foot traffice of the tenants and the people who came to visit the tenants.  A

Oct 02, 2011 11:04 AM
Monika Depalo
GAFF'S REFERRAL'S INC. - Port Orange, FL
REAL ESTATE Agent/Stager

Mitchell, I applaud this post and would like to see the continuation of what actually transpires.

I'm not a soap opera fan but this can be like a soap opera with all the new characters.

Shakespeare would love that neighborhood--it actually buzzes with opportunity just not the right fit yet.

Please continue this post and I will check back.  I'm not preaching I hope as I just like to look on the bright side when others see bleak.  Innovation rarely comes out of negativity.

Just heard a story about MICHIGAN and the way the movie industry is embracing the areas that got run down and abandoned to make movie sets.

When I was in NYC about 20 years ago I ate at a restaurant called ACT I up top of a skyscraper in Times Square. That area attracted newcomers after one paved the way and believed it could happen. Now the entire area is somewhat rebuilt. 

NYC is one of the most vibrant and vistied places in the world and most people worldwide know where it is.  May your block find the right fit to make the world go round.

Oct 02, 2011 04:48 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Mitchell   Looks like greed kills . Just like road kill .  When you have a good tenant you should keep them . Just goes to show Joni Mitchell goes a long way ...now I will be singing that tune all day

Oct 03, 2011 07:09 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
YUP! :)
Oct 03, 2011 04:19 PM