(credit: Sugar Pond)
So 2009 was a wild year for the stock market. The dramatic fall brought down big firms like Lehman Brothers and other big time banks. Many of them bounced back by the end of the year with the help of world governments. Sadly, the same can’t be said for small and mid-sized businesses. In the retail industry, a complete lack of government support was present and is a visible sign of tough times.
While walking up and down the streets and avenues of Manhattan, I was surprised by the amount of vacant storefront retail space that was available for rent. We’re talking some of the most prime real estate in the world! The foot traffic alone should easily be paying the bills, irrespective of actually building a reputation for yourself.
Most retail businesses have peaks and valleys from their income and that is completely normal. They are generally able to survive the thin months through reserves they have from the good ones. But the great recession of 2008/09 was clearly to such a magnitude that people significantly shifted their way of spending to such effect to change the landscape.
Trading Spaces…sort of
This glut of vacant retail space has been a tremendous opportunity for artists and their works. There are organizations that are promoting these vacant retail spaces as pop-up art galleries showcasing local artists. There is no rent charged to the artist. In Manhattan there is a great irony with this trend. Since many of the prime retail districts of today were originally claimed by artist who were forced out by rising rents that only commercial ventures and wealthier clientele could afford. Talk about full circle.
This agreement between building owner and artist actually benefits both parties, not just those creative types getting the free ride. Having a tenant in the location demonstrates the salability of the space, decreases the likelihood of vandalism, and improves the overall security of the building. By giving away the space for free they are actually increasing their chances of renting the space to paying clients. Weird eh?
Too Many Chefs In The Kitchen
One of the most famous restaurants in New York or maybe even the world, closed its doors on New Year’s Eve. Tavern on the Green was always a place for the finest of dining in the best of locations. Smack in the middle of Central Park. Although some say that it closed as a result of mismanagement, it seems to me that it had to have been in part to do with the recession. You know it’s bad when location, and reputation are both the best in the world and you still can’t make a successful run in business. Before the recession the Tavern on the Green was bringing in $38 million a year from about 700,000 meals.
For You, Good Price
As a traveller to the New York lands of recession, there’s no reason you can’t take advantage of the discounted retailing offers. The 70% off sale at Saks 5th Avenue could even entice the Wal-Mart shopper to take another look. I took advantage, although at the outlet mall version of the retail experience. Examples? How about a Hugo Boss dress shirt for $30 (reg. $150) or maybe a Calvin Klein sweater for $15 (reg. $95). So if you make it to New York this year break out the credit card and live like a debt benign maxed out American. Just remember to pay the bill.
Seeds Of Purpose
The Big Apple certainly hit a sour season but it seems as though the worst has past. New Yorkers are adapting to the new post-credit crisis work and life will slowly come back to normal. The retail spaces will undoubtedly kick the artist out in favour of a Starbucks or Crocs store. But now is indeed a unique time to visit one of the world’s marquee cities.
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Written by Journeyman
Topics: Rants, Travel Stories