What's the limit when it comes to rentals?
Maybe rents aren't so high in the Grove. I went out to Lincoln Road on Sunday to visit our friends at the Antique Market. I noticed that the Pottery Barn and Williams-Sonoma went out of business. My friend told me that they couldn't afford the rent - $100,000 to $115,000 per month! Who could afford that? Nike, that's who, apparently they are taking the spaces to sell sneakers.
I was in a store in New York not too long ago. It just sold sneakers, wall to wall sneakers, starting at about $350 a pair and the place was mobbed on a weekday with shoppers. Maclamore, from Maclamore and Ryan Lewis walked in, but there were so many people he had to leave. People started chasing him down Broadway, about a block away, he and his friend hopped into a cab in front of Grace Church and they sped off.
The Guess store is still up for grabs here in Coconut Grove for about $30,000 per month, I don't know what the former Goose location is going for, but that's probably up there in rent, too.
So sneakers stores seem to be the place that draw people. There's always a line at Soles in the Grove, when new items come out. People are lined up before the store even opens.
I was in a store in New York not too long ago. It just sold sneakers, wall to wall sneakers, starting at about $350 a pair and the place was mobbed on a weekday with shoppers. Maclamore, from Maclamore and Ryan Lewis walked in, but there were so many people he had to leave. People started chasing him down Broadway, about a block away, he and his friend hopped into a cab in front of Grace Church and they sped off.
The Guess store is still up for grabs here in Coconut Grove for about $30,000 per month, I don't know what the former Goose location is going for, but that's probably up there in rent, too.
So sneakers stores seem to be the place that draw people. There's always a line at Soles in the Grove, when new items come out. People are lined up before the store even opens.
posted by Tom Falco at 5:00 AM
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4 Comments:
Yep, Tom. The market demands have changed and proprietors feel like they can make more money by charging higher rents. Unfortunately, the existing tenants have businesses that are working under a business plan that is for a less costly market. The relocation of these businesses to lower rent areas that are either smaller, poorer location or in older buildings. That's capitalism but it might not be the free market. Government policies can interfere with market signals fooling landlords to raise rents and lose tenants.
On the subject of real estate... I saw some evidence pointing to the fact that Bice Bistro is for sale. If true, hopefully the new owners won't relocate.
Michael Comras demanded Pottery Barn and Williams Sonoma pay 3x more in rent. Of course, they refused. 300% increase! Too bad they were nice stores.
I don't think you'll have a problem finding another Pottery Barn or Williams Sonoma. Their leases were probably 10 year deals when rents were $80 a foot, so I wouldn't lose too much sleep over poor Pottery Barn's rent increase. BTW, their margins are probably 300%.
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