real estate With Communitea coffee shop closing its door on Vernon Boulevard, another ‘oldie but goodie’ retail treasure of LIC is gone. A decade after helping establish the new wave in the neighborhood, same businesses in the now “hot” area can’t justify the new rents. Fans and neighbors are devastated and everyone fears another burger joint, Asian fusion restaurant or real estate office will be going in Communitea space. A new sushi joint a block away will be paying the new “high” rent but the difference is that there is an owner who cares about quality and balance of retail in the neighborhood. At $60 per square foot in the most “happening” part of western Queens, compared to $15-$25 for industrial space and $18-$30 for office and commercial lofts in the interior of Long Island City and Astoria, the rent makes sense and for the right kind of operator should work just fine. As long as a food establishment can sell alcohol, they should be able to do well. At the same time, no retail business of any kind, that generates its revenue from within the store, can yet justify paying $100 per square foot on Vernon Boulevard in today’s market. That certainly excludes a bank or another neighborhood STATE OF LOCAL RETAIL by david dynak David Dynak is a real estate broker at First Pioneer Properties and an LIC resident. He’s lived in Western Queens since 1993. favorite – a real estate office! On Queens Boulevard in Sunnyside, rents hovering around $100 per square foot for some smaller stores have been seen for a long time, but there certain retailers justify such rents with high foot traffic coming both from the surrounding neighborhood’s residential density, and a steady flow of outside customers passing by in their cars or on the No. 7 train. Along Steinway Street in Astoria, there is also the residential neighborhood’s customer base, plus destination crowds that have been coming to Steinway for clothing and food shopping for years. Vernon Boulevard is neither a major throughway like Queens or Northern boulevards, nor does it have enough concentration and variety of retailers to serve as a destination spot for enough visitors from outside the neighborhood. This could be solved if a multi-screen theater, sports complex or another major-draw destination were to set up permanent shop somewhere between the water and Court Square. This concept has been tested already: if you ask retailers what their busiest day of the year is, they will tell you it’s NYC Marathon, and it’s not limited just to stores along the race’s route but also closer to Court Square and on the waterfront. The influx of spectators and support staff, the sheer volume of folks coming through the neighborhood for even a short period of time in a day makes all the difference. While the residential numbers and wallet sizes are steadily going up, there are limited reasons to come here, apart from the Gantry Park. Yes, we the residents like the relative peace but it’s the seasonal events like the ever-growing Kid’s Halloween Parade and Fourth of July fireworks which help retail stores, as extreme spikes in business help make up for slower days and introduce the neighborhood to new people. Another way to help our retailers is growing the office market. If more employees and entrepreneurs work from around here for 40+ hours per week, lunch food business and services will be able to make their money during the day also. Is this a realistic prospect? Well, with office rental prices in the Garment District now well above $40 per square foot, where only a few years ago they were in the low $20s, one can argue a whole wave of commercial tenants should be looking for space just one stop on the subway from Grand Central or 59th Street & Lex . But let’s leave that topic for another column. Also, we should keep our expectations humble, no matter the neighborhood’s development and its growing appeal. Retail business in general is undergoing major changes unforeseen just 10 years ago. In a world where anything, including take-out food and groceries, and laundry services can be purchased and delivered to your home with a few clicks of your mobile device, and at an increasingly lower price, escalating store rents make less sense than ever. Thank you, Amazon! ABSOLUTE CLEANERS SERVICING ALL L.I.C. BUILDINGS WITH OUR FREE NO HASSLE VALET PICK UP & DELIVERY RIGHT TO YOUR RESIDENCE • Custom Dry Cleaning • Shirt Laundering • Tailoring & Alterations • Leather & Suede • Wash & Fold Service • Drapery Cleaning • Houldhold Items • Free Box Storage www.absolutecleaners.net 4-71 48th Ave. • 7 18.392.3139
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