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How Manhattan Became a Rich Ghost Town

theatlantic.com

61–70 of 153 posts

Re: How Manhattan Became a Rich Ghost Town

#61

Earlier quoted context omitted.

> The turnaround of restaurants and bars here is amazingly fast. When one fails, another one springs up. The same street will have very different storefronts each year. Is that supposed to be a positive thing? Sounds pretty unstable and a terrible detriment to developing an actual neighbourhood.

Not generally. The good stuff will stick around. The stuff that isn’t as good wont. Most cities are about change, and while nostalgia is great, cities that look the same as they did 20 years previously usually are not successful cities. The reason is simple. Cities tend to attract younger folks. As the generation of people they attract changes, the tastes they need to cater to also changes.

Timespan matters. If businesses repeatedly don't do well, yes you get your 'fun' upper middle class variety, but the people trying to get a foothold and start businesses will fail and, with the lack of a real safety net, likely not open up further businesses. If that becomes the majority of small business owners in an area, wave goodbye to your 'fun' variety, small businesses, and hello to becoming Cleveland.

I'm lucky that when my family came to America, it was still possible (and, more importantly, probable) to open a small business and build enough up to send your kids to college, expand your business, etc. Now, in order to be successful, you have to buy the property your shop is in too as a hedge against a downturn in business (more important in places with seasons when foot traffic declines), which reduces opportunity to entrepreneurs with fewer resources.

Re: How Manhattan Became a Rich Ghost Town

#62
post #32

Earlier quoted context omitted.

Right, cause coffee is so hard to make yourself. I guess I'll never understand the point of hipster coffee shops. I'm all for cozy cafes, but all the hipster style coffee places, like 9th st. espresso, are the opposite of that: more catering to the trendy, minimalist, i3-gaps ikea aesthetics of the mainstream of /r/unixporn.

I don't usually carry an espresso machine with me as I walk around the city, so, actually, yes, if I want to drink an espresso while I'm out, then I'll probably need to buy it from a coffee shop.

As if half the customers aren't ordering iced coffee.

Re: How Manhattan Became a Rich Ghost Town

#63

I lived in NYC from 2009 to 2017 and can affirm the author's feeling. Over the span of those years, and mostly as of late, I saw many of my favorite brick and mortars (Rare books, sporting goods shops, record stores, etc.) all be replaced by coffee shops or juice places. Granted each of the above mentioned places have challenges with their respective industry but the feeling still stands. Having been born in North Te…

"How many mattress stores and Sonics does a town of 100,000 need?"

http://freakonomics.com/podcast/mattress-store-bubble/

Re: How Manhattan Became a Rich Ghost Town

#64

Earlier quoted context omitted.

Owning commercial real estate allows one to depreciate it regardless of it collecting rent or not. It is not possible to close this loophole because 322 Prince St, LLC does not have to rent the space to Joe's Boutique for $7,000 a month rather than Starbucks for $17,000 a month - it can rent that space to "JP772 Holding, Inc" out of Nevada for $10/day which would be owned by the members of 322 Price St, LLC which wou…

I thought that technically the LL then owes the IRS in imputed income? (Income based on market-rate rental values)?

Imputed income is not taxable in the United States, according to Wikipedia.

Re: How Manhattan Became a Rich Ghost Town

#65
post #43

In Boston, there was a debate recently about 50 empty ground-level retail spaces on Newbury Street, an old street in the center of town long considered a place for luxury boutiques/salons/etc. But others questioned the data: https://www.universalhub.com/2018/lot-empty-storefronts-newb...

I live in that neighborhood, and as the article says it looked like it was mostly a ton of turnover. There's a lot of it on Newbury, which is a problem in its own right, and the places that remain are largely regional and national chains. The costs are also driving people to move to other neighborhood and towns, with Eastie, Somerville, and Southie growing much more than the traditionally desirable neighborhoods in Boston.

Anecdotally, the company my wife works for has a presence on Newbury, they're a large national chain, and the store (a flagship) has one of the lower sales volumes in the entire region, despite being one of the most expensive rents the company holds. The problem is manifold here - rising business rents pushing businesses out, rising residential rents pushing people that aren't tourists out, and likely more that I'm less familiar with.

Re: How Manhattan Became a Rich Ghost Town

#66

Earlier quoted context omitted.

Owning commercial real estate allows one to depreciate it regardless of it collecting rent or not. It is not possible to close this loophole because 322 Prince St, LLC does not have to rent the space to Joe's Boutique for $7,000 a month rather than Starbucks for $17,000 a month - it can rent that space to "JP772 Holding, Inc" out of Nevada for $10/day which would be owned by the members of 322 Price St, LLC which wou…

I thought that technically the LL then owes the IRS in imputed income? (Income based on market-rate rental values)?

Not in the United States.

Re: How Manhattan Became a Rich Ghost Town

#67

Earlier quoted context omitted.

I don't usually carry an espresso machine with me as I walk around the city, so, actually, yes, if I want to drink an espresso while I'm out, then I'll probably need to buy it from a coffee shop.

As if half the customers aren't ordering iced coffee.

Do you carry an ice bucket when walking around town?

Re: How Manhattan Became a Rich Ghost Town

#68
I had read a bunch of these stories before going to NYC as a tourist a few weeks ago. I didn't see a single block that was full of empty storefronts and the whole city was packed and vibrant as usual. Bought some clothes at temporary popups as well.

Re: How Manhattan Became a Rich Ghost Town

#69
post #18

I live in manhattan and I feel this story is a bit exaggerated, or at least I don't see the author's reality. (Him quoting a Real Estate firm, which is interested in activity, doesn't give credence to the data). The turnaround of restaurants and bars here is amazingly fast. When one fails, another one springs up. The same street will have very different storefronts each year. I once asked a restaurant owner, on how i…

> The turnaround of restaurants and bars here is amazingly fast. When one fails, another one springs up. The same street will have very different storefronts each year. Is that supposed to be a positive thing? Sounds pretty unstable and a terrible detriment to developing an actual neighbourhood.

>Is that supposed to be a positive thing? Sounds pretty unstable and a terrible detriment to developing an actual neighbourhood.

Nationwide, 90 to 95% of restaurants fail in the first year. Not to say NYC isn't worse, but it's more noticeable when it's that dense.

Re: How Manhattan Became a Rich Ghost Town

#70

I actually think that we no longer live in a capitalistic system. A lot of firms continue to behave in ways that capitalism should punish, but doesn’t. My current running theory is that our economy is more based around rent extraction, largely from land and companies that wield effective monopolies or oligopolies, rather than competition. This explains why we keep seeing things that make no sense from a capitalist po…

You are confusing capitalism with competitive markets. Capitalists want to make money off their capital, they don't care it's through competition or rent extraction. Having a monopoly is much less work than competing so that's probably the preferred way to make money. Capitalists also historically didn't care about democracy, dictatorship or corruption as long there was money to be made.
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