Are you considering opening up a store in Manhattan?
Manhattan, the borough that has come to represent New York City, can be a dream come true for retailers, as well as their biggest nightmare.
Manhattan offers a tremendous potential customer base, as well as a correspondingly high amount of competition.
The rents can seem, and are in many instances, astronomically high. The flipside is that those rents reflect the high level of traffic that the commercial space enjoys.
There is some good news. Landlords are motivated to offer better rates and lower rents for their commercial spaces.
Landlords have many vacant storefronts, primarily because a significant percentage of retail sales have moved online.
Landlords who are facing steep vacancies, can soon be facing foreclosure. Many landlords in New York City, especially in Manhattan, use mortgages to purchase their properties. If the properties cannot produce enough revenues to cover the cost of their mortgages, the owners can soon be in default, and are likely to lose their properties.
Landlords do have the option of refinancing their mortgages, or of selling their properties.
Since landlords do need to find renters for their storefronts, a boutique owner has leverage that she can use in the negotiation process.
If you are considering opening a boutique in Manhattan, I would recommend that you consider using the services of a buyer's broker. A buyer's broker will represent your interests in the acquisition of real estate.
Manhattan offers a tremendous opportunity for retailers, and that opportunity is the large tourist market. Every year, there are millions of people that visit Manhattan.
According to NYC & Company, the city's tourism marketing agency, in 2019 there were over 62 million tourists who visited the Big Apple. (This figure includes all five boroughs, the Brooklyn, the Bronx, Manhattan, Staten Island, and Queens.)
One of my wholesale business's customers, had a successful boutique located in the St Regis Hotel. The boutique sold items as diverse as candies, newspapers, dress socks, neckties, toys, and accessories.
You might want to consider renting a commercial space located in a hotel. You can also look for a storefront that is adjacent, or next door, to a hotel.
You might also consider renting a store that is located within an office building, a school, a college, in Central Park, or in a municipal building.
It is crucial that you make sure that you have the right products for your market. Every neighborhood has its own distinct identity. For example, the Village caters to NYU students and professors, Wall Street caters toward bankers, the Upper West Side caters toward families and professional singles, and Times Square caters toward tourists.
Although no neighborhood is monolithic, you will find that different neighborhoods have different product preferences.
If you are ready to open your own shop in Manhattan, you might want to consider using the services of a commercial real estate agent.
The following are a few of the many firms who can help you find a space for your shop:
Keller Williams NYC, Kassin Sabbagh Realty, Douglas Elliman, and Bestreich Realty Group.
You can also search for property by visiting Loopnet.com
Before signing a lease, make sure that your store can realistically produce enough revenue to cover all of your expenses, and still leave you with a profit.