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Q&A
Analysis of commercial leasing practices and vacancy rates
0:49:58
·
5 min
Council Member Amanda Farias inquires about SBS's analysis of the relationship between commercial leasing practices and high vacancy rates. Commissioner Dynishal Gross explains the agency's efforts to understand and track small business vacancies citywide.
- SBS has increased efforts to comprehensively understand small business vacancy rates citywide
- The agency shares vacancy data with other city agencies and works with the Department of City Planning
- Feedback on commercial lease challenges often comes from elected officials aware of impacts on specific corridors
- Challenges vary and can include affordability issues, rent arrears, and changes in property ownership
- SBS works closely with merchant associations, BIDs, and other community organizations to address these issues
Amanda Farias
0:49:58
I'd like to talk about some of the effects of commercial lease difficulties.
0:50:03
High storefront vacancy rates remain an issue for numerous communities in the city.
0:50:07
Has SBS analyzed whether there are any relationships between commercial leasing practices and high vacancy rates?
0:50:14
And I'd like to know whether lease or legal challenges might be contributing to the high number of vacancies.
Dynishal Gross
0:50:21
I don't think we're quite there yet, council member Farris.
0:50:24
We have really increased our work to understand the incidence of small business vacancy vacancy and changes in small business vacancy citywide on a comprehensive basis, and that has been an incredible, resource.
0:50:39
It's actually it's a data resource that we share with many city agency partners.
0:50:44
I believe we have a community of practice on small business and commercial vacancy that includes, more than a 100 city staff across many agencies, and, we work with our office of technology and innovation, to to share that data, citywide.
0:51:03
But the human behaviors that that contribute to vacancy, I think, are the next level analysis.
0:51:09
So we've been, working with our department of city planning, sharing the live x y z data.
0:51:15
You saw some reporting recently and a DCP study on commercial vacancy citywide, and there are additional questions that we hope to explore.
0:51:25
It will be you know, we we also need to maintain those the insights that we have through that work, and so we're hoping to have, success in doing that in upcoming budget cycles.
Amanda Farias
0:51:35
Okay.
0:51:35
I think it's really important for us to focus in on this aspect.
0:51:39
I I a 100% agree that sometimes there are maybe some business or entrepreneurship practices that can add to whether or not there's consistency or longevity.
0:51:49
But there are also some of the, I think, larger, more macro commercial corridor management company or landlord lessee relationships that are expanding and really, impacting how small businesses get to stay within corridors and in communities.
0:52:08
And it should be on us to be managing and figuring out systems and feedback.
0:52:14
In in terms of the feedback, have you folks heard from small business owners and other small business representatives on how commercial lease challenges might be making it difficult to find or stay a suitable location in communities for their business?
Dynishal Gross
0:52:29
So I, council member, I think where we have heard, from groups of business owners or about challenges of groups of business owners, it's primarily been from elected officials, who are aware of some impact, on a corridor that may be relating to, say, a pending economic development project, an upcoming rezoning, where there may be landlords who are reluctant to renew leases before they understand what the impacts of those, changes may be on the neighborhood, whether or not they present additional market opportunities for the landlord.
0:53:08
I would say, other than that, we we work with the individual business owners and the and the the reasons that they're experiencing commercial lease challenges really vary.
0:53:20
Sometimes they have to do with, you know, issues of affordability, nonpayment, and, you know, the challenge of managing rent arrears.
0:53:30
Sometimes they have to do with transitions and property owners and, you know, prior relationships with with the owners, long term relationships, that have been disrupted because of the sale of a a property.
0:53:45
But where we've heard from about groups of business owners, it's often been related to neighborhood level kind of real estate changes or concerns about them.
Amanda Farias
0:53:56
Thank you.
0:53:56
I'd like to acknowledge we've been joined by majority with Brooks Powers.
0:54:02
Outside of that, are you getting any referrals from our merchant associations, our be you know, EDCs, our bids, and and whatnot, and also to support that or to respond to some of the vacancy rates or, like, high rental increases that they're hearing, etcetera?
Dynishal Gross
0:54:20
Yes.
0:54:20
So we are the teams and divisions across SBS work really closely, together.
0:54:27
So our neighborhood development division both helps to form bids, is part of the governance of bids in an ongoing fashion.
0:54:35
The we deliver grant programs and capacity building programs for bids and other community development organizations that are focused on the health of commercial strips.
0:54:45
And they are deeply familiar with SBS's services, and they help to connect businesses within their boundaries and even nearby to those services.
0:54:54
And so, yes, we hear from our merchants associations, our business improvement districts, but we have a really robust ecosystem, of small business supporters in the city.
0:55:05
I think all New Yorkers are a little bit obsessed with small businesses, but there are many nonprofits that make it their mission, and we're lucky to have their partnership.
0:55:13
They range from, you know, the membership associations and the chambers of commerce and other ethnic merchants associations to community based development organizations like Bridge Street, and other types of nonprofit partners.
0:55:26
So, yes, we are in close partnership with them.
0:55:29
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