World Is Dying Off: NYC Transforms Into A Retail Wasteland

World Is Dying Off: NYC Transforms Into A Retail Wasteland

New York City Transforms Into A Retail Wastelend

One of the more remarkable aspects of US late cycle fiscal easing is that it has attempted to smooth the business cycle ahead of the US midterm election and the US presidential election in 2020.

There is now widespread expectation that growth in 2018 has exceeded trend by some margin (mostly from corporations pulling forward future growth to get ahead of tariffs), but the Trump administration’s unorthodox easing in the most extended bull market ever could have a tremendous, and dire, payback period which together with the near-monopolistic dominance of online retail giant Amazon, is starting to

rear its ugly head in a plague of vacant storefronts in New York City’s most popular retail corridors.

The New York Times recently set out, panoramic camera in hand, to capture the retail wasteland in New York City, and more warning signs about the US economy.

“When you walk the streets, you see vacancies on every block in all five boroughs, rich or poor areas — even on Madison Avenue, where you used to have to fight to get space,” said Faith Hope Consolo, head of retail leasing for Douglas Elliman Real Estate, who said the increase in storefront vacancies in New York City had created “the most challenging retail landscape in my 25 years in real estate.”

Consolo said a recent survey conducted by the firm found that approximately 20 percent of all retail space in Manhattan is currently vacant, compared with 7 percent in 2016.

As the commercial real estate crisis continues to engulf New York City, this is contradictory to the era of soaring prosperity maintained by the administration. In fact, fiscal easing appears to have aggravated the vacancy problem by producing a glut of new commercial real estate.

“Particularly hard hit are gentrifying areas in Brooklyn and many of Manhattan’s top retail strips in some of the world’s priciest shopping districts, from Broadway in SoHo to Madison Avenue on the Upper East Side.

Soaring rents and competition from online shopping have forced out many beloved mom-and-pop shops, which many residents say decimates neighborhoods and threatens New York’s unique character. Then there is the blight that shuttered stores bring, including vagrants, graffiti and trash.


New York City Transforms Into A Retail Wastelend

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