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Q&A

Factors affecting vacancy rates in different areas of New York City

1:09:52

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104 sec

Council Member Bottcher and Commissioner Gross discuss the factors contributing to declining vacancy rates citywide and persistent vacancies in the central business district (Midtown and parts of downtown Manhattan).

Small business creation has increased since the pandemic, concentrated in outer boroughs
Manhattan faces challenges due to higher real estate costs and competition from online retail
Changes in shopping habits, work patterns, and the food and beverage industry contribute to vacancy trends

Erik D. Bottcher

1:09:52

And in your testimony, you state that the small bit small businesses in the central business district are experiencing high turnover and persistent vacancies.

1:10:03

Essentially, you're talking about midtown Manhattan.

Dynishal Gross

1:10:06

Midtown and some parts of downtown Manhattan.

1:10:09

Yes, council member.

Erik D. Bottcher

1:10:10

To what factors do you attribute the declining vacancy rates citywide over the last 4 consecutive quarters?

1:10:19

And to what factors do you attribute the high turnover and persistent vacancies in the special in the central business district?

Dynishal Gross

1:10:28

So we've seen, an increase in small business creation since the pandemic.

1:10:33

That small business creation has been concentrated in the outer boroughs.

1:10:38

In the, in Manhattan, we've got higher real estate costs, and we also have challenges that small business experience due to competition with online retail.

1:10:51

The way that we shop as New Yorkers has changed a lot, and that has changed the calculus of business owners about operating in brick and mortar spaces.

1:11:02

I I think there are also some associations perhaps with hybrid and remote work patterns.

1:11:09

So, you know, some commercial areas in outer borough neighborhoods that, you know, didn't have shoppers, you know, for the lunch hour.

1:11:18

Now May.

1:11:20

There are also changes in the food and beverage industry, in the delivery industry, in the available of commercial kitchen space through ghost kitchen.

1:11:28

So there are many, market market factors that also contribute to the change, but those are a few.

Erik D. Bottcher

1:11:35

Thank you.

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Current vacancy rates and trends for storefronts across New York City

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Vacancy rates by borough and changing business landscape