Readers Respond to Saving Small Business Effort

Saving Small Business has been a topic of many stories in these pages as well as a rallying cry from our editors. Last week, we published an editorial urging city officials and landlords to address the crisis facing small businesses in Manhattan (“Special Report: Our Neighborhood in Crisis”). We also held a forum to discuss the issue with business leaders, politicians and small business owners. Below, readers respond to the call for action.

History Repeats Itself, Again

By Ian Alterman

To The Editor:

Kudos to you for your ongoing coverage of the loss of small businesses, and your recent seminar thereon. I was unable to attend, but I want to comment on a couple of points, and bring up one that has not been mentioned.

You say, “It began as a drip of closings a few years ago.” Actually, the issue has been with us for well over two decades. In fact, for many years in the ‘90s and ‘00s, I did an annual survey of empty storefronts on Broadway, Amsterdam and Columbus between 72nd and 86th Streets. My letters “reporting” these surveys were published regularly by this newspaper. So while it is true that it became worse after the 2008 recession, it is not a new phenomenon. As well, while it is true that many, if not most of the empty spaces are eventually taken by “big box” stores and banks, what is unmentioned is that these storefronts often lie empty for years before being re-rented. Thus, landlords are forcing out small businesses that could have stayed and paid rent until a new tenant was found. Instead, landlords are depriving themselves of rent they could have been collecting. In an article in this newspaper some years ago, Upper West Side commercial real estate broker Rafe Evans called this behavior “illogical...irrational...self-defeating.” I would add mean-spirited, since landlords could keep current tenants for longer.

One point not brought up yet is that this issue followed very closely the (over)development of “luxury” housing (co-ops and condos) of the 1980s and 1990s, and the influx of a higher socio-economic class – which has not only continued, but has reached fever pitch, as apartments and townhouses now regularly sell in the millions and even tens of millions of dollars. I believe that this influx of comparatively wealthy residents led inexorably to the loss of small businesses and the rise of the “big box” stores and banks. This is because the majority of these people are not community-minded: they want the convenience of a “one-stop shop” like Duane Reade or CVS (particularly now that they have large “grocery” and prepared food sections), and a bank within striking distance. They simply don’t care about “local business” (except those they must use, like dry cleaners and locksmiths) because they would have to go to multiple stores to get what they need, and might have to pay a few pennies more for those items. (Indeed, ask the president of any block association, neighborhood association or other organization that has been involved in community activism and they will almost undoubtedly agree with my assessment here.) Add to this that even many long-time residents have come to appreciate the “convenience” of one-stop shopping, closer banks, etc., and it becomes only natural that landlords would provide the kinds of merchants that residents seem to prefer.

Without being hopelessly pessimistic, I am not sanguine that we will ever “fix” this problem. This is because, while landlords almost certainly bear the greatest responsibility here, the issue is ultimately about behavior: since we cannot control the behavior of consumers (whether the new wealthier class or the long-time residents), if we cannot get them to understand the value of local businesses – even if it takes a little more time to shop and costs a few more pennies – then landlords actually have little or no incentive not to bring in “one-stop shops,” banks and “big box” retailers.

Consumers Get Hit

By Robert Landau

A good and necessary article, I would like to add that many businesses that have remained open through the years, have done so by raising prices (I am thinking particularly of the several “Greek” diners, particularly the one on 75th street and Broadway), probably because they signed a second lease. This rent increase is, of course, immediately passed on to consumers like myself; it used to be one could enjoy a sandwich in one of those diners and a cup of coffee and still leave having spent around $6.00. Now just a sandwich by itself, tax and tip is close to $9.00.

Birdbath, a newly opened food store on Broadway and 80th street just charged me $3.80 for one chocolate chip cookie. Of course they are a new business and are probably paying a high rent, thus the cost gets passed along to us.

What can be done?

Most New Yorkers, while not apathetic, simply shrug their shoulders and think “what can I do?” and just continue dealing with these changes. Our representatives understand that the real estate lobby is a strong one, and don’t want to confront it. Until the politicians really experience outrage from their constituents, it will be hard to get them to act.

What would be great would be if a group could be formed truly devoted to effecting some commercial rent control changes in favor of the consumer. What we need are petitions, flyers around the Upper West Side, anything to make most of our neighborhood citizens aware that change is possible. And done in a very strong way.

But is this possible; can such a group be formed? Hopefully, yes, the more this issue is

brought to the attentions of every day citizens, the greater hope for change.