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90% of restaurants not making rent in NYC – leases can’t be renegotiated. Businesses are dying.

https://nypost.com/2020/09/21/almost-90-percent-of-nyc-bars-and-restaurants-couldnt-pay-august-rent/
http://archive.is/FKACg
https://www.cnn.com/2020/09/19/us/nyc-covid-restaurant-surcharge-trnd/index.html

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Written by Louis Rossmann

Comments

  1. Adam Smith,despite my various political disagreements with him stated the distinction between landlords and people who do real work the best.

    “As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce."

  2. One big factor I didn't see mentioned is the tax incentives these large real estate companies have to leave spaces empty. If they are leasing 50 spaces to Starbucks and Chase then the lost revenue on vacant spaces offsets those gains to limit tax liability. Tax laws are what dictate "Market rate", not what the market is willing to bare.

  3. Cant lower rent when taxes are high. Its time to lower taxes substantially. Its time for an overhaul of property tax and property worth to realistic numbers. Its time for people to riot for real change cuomo living the goodlife while real people who are busting their backs aren’t making it.

  4. When they lock down the business, they should also lock down the whole food chain accordingly.
    No income from business, no income for landlord, no income for the mortgage lender, and no tax for that lock down period too.

  5. Dems have never had any understanding or appreciation of economics ….to vote Dem, like NYC always does, is to vote in shallow minded corrupt officials…..past governments built parks, museums, public arts ….contrast the past to the current Dem regime

  6. With USPS you can do your work ANYWHERE bro……. You will not lose business moving to another big city, you may very well GAIN business with new physical exposure in a cheaper large city

  7. Can rent really be that much for an average sized store? What sort of restrictions are there on the market that prevent the demand from being filled? Holy shit man, I get it new York is cramped and land isn't plentiful, but you'd think they would manage considering the demand. That city is gonna be in a ditch, even if there wasn't covid, I bet they would be going down the shitter.

  8. 90% wiped out — you don't seriously believe this was another "accident" by an "idiotic" gov ?? The governors, who all belong to Bill/Mel Gates funded NATL GOV ASSOC, should be removed.

  9. Your comments are pretty much in line with my own thoughts over the last few weeks, and while I agree that this will only get worse over the winter, I think spring will bring amazing deals for tenants as the cash flow pressure on landlords/ investors will drive a race to the bottom.

    If that happens, it will be in the interests of tenants to negotiate the lowest long term rates as possible, and openly play landlords off each other.

    Separate from that, what I see happening is that restaurants who are forced to exit large units will end up taking the hallway for 6500USD with a business model that is 100% delivery. I have seen this in other markets, and assuming office buildings reach more than 50% in the next 6-9 months, there will be a huge gap in the market that will need to be met.

    All the best with your negotiations!

  10. Move out i consider citys the root of all evil and cuase for bullshit we see today on all levels .. When will people realize capitalism is a bad thing lol as the rich capitalize on average people your all idiots ..learn too be self sufficient…deal with it lol cant wait till police make you homeless

  11. Do you really believe things are getting any better beginning in 2021 ? The so far weird behaviour of the US gov has long lasting consequences regardless of the November votes

  12. I guess poor governance is pretty much everywhere. Landlords in Singapore are pretty much the same, jacking up rents with no regulations from authorities. Most small businesses have gone under during this pandemic cuz most of the government aid is going to big corporations. SMH

  13. Greedy landlords and the banks need to be taught a lesson. Any city ruled by liberal management deserves to fail. Their ideals are not economically viable. Then throw in the “ planned event bullshit Covid hoax”, we are all fuxed for a while, but people are waking up and seeing it for what it is.

  14. Thank the left for this debacle. Not sure how the cities plan to collect property taxes when nobody can do business- rent equals tax payments. City council members are completely devoid of reality.

  15. Here in the UK some landlords even declared that their tenants should pay full rent as now they will not be spending money on summer travel so. The arrogant leftovers of the aristocracy really need to fucking disappear XD. not to sound like a marxist, but not everything the left talks about is complete BS.

  16. People need to get the fuck out of super cities, with the advent of the internet we dont need this anymore. It's not good for anyone involved. People just need to move out into suburbs, and develop rural areas. How many companies realized during covid that we dont actually need offices to get the job done?

  17. From what your experiences have been and how this is gonna evolve I don't think it's looking particularly looking good for new york. Thanks for these kinds of rant videos though, they're much more interesting than homework

  18. You have two things going against revitalization after this is over. First, NYC is hemorrhaging residents, I live in the NYC burbs and the real estate market here is exploding. People are making offers, above asking price, sight unseen! They're buying out here, that means they're not planning to come back to the city. Second, you have landlords with prime downtown property, who are politically connected and getting paid well by the city to use their properties for section 8 and homeless shelters. What does that do for your business? Between 6 years of DeBlasio, and now a pandemic, it may well be that we soon mourn the late great NYC.

  19. I wonder if there are similar issues in other extremely large cities. It seems like there might be purely based on the similarities as to how they handle commercial real estate…

  20. How much did you drop your prices when people lost income due to the pandemic and could afford repairs less than before? if you did not, why would a landlord?

  21. Louis you're the next Seinfeld. A production company about NY"s demise, funny little episodes, Youtube videos, "F—' tv producers, reality is always stranger & much more interesting then script writers fiction.

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