We really are in a era where prime city store frontage is basically a living billboard. These companies are losing money, but see keeping space as a marketing tool.
it's really going to suck next downturn when they start tightening their belts. Having no connection to the community, they'll just up and leave. Landlords making bank now, will be looking at foreclosures then, as there will no one looking to stay put.
And Back Bay too. And I think correct-from those I have spoke with, both on the leasing and lessor side, many of these national/international retailers are losing money but their presence is financed partially out of marketing funds. With +/- 250k students and a lot of tourists that business model works. Unfortunately the small and local retailer are squeezed so hard many will not be with us much longer which is sad for those that live in these neighborhoods. It's not long before the local hardware store, dry cleaner, market, etc are gone.
Take a walk down Newbury Street and count all the empty storefronts-rents have been jacked to new levels that do not work for a profit based retailer. The owners can and will wait until the next marketing based retailer, ready to pay market + shows up and leases.
Greg seems to be spot on with the marketing function of national/internation retailers wanting to market their brands. However, having read the article, these seem to be high end boutiques, not hardware stores, dry cleaners and markets chasing the same demographics as the megacorps.
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Sucks
We really are in a era where prime city store frontage is basically a living billboard. These companies are losing money, but see keeping space as a marketing tool.
it's really going to suck next downturn when they start tightening their belts. Having no connection to the community, they'll just up and leave. Landlords making bank now, will be looking at foreclosures then, as there will no one looking to stay put.
South End retail...
And Back Bay too. And I think correct-from those I have spoke with, both on the leasing and lessor side, many of these national/international retailers are losing money but their presence is financed partially out of marketing funds. With +/- 250k students and a lot of tourists that business model works. Unfortunately the small and local retailer are squeezed so hard many will not be with us much longer which is sad for those that live in these neighborhoods. It's not long before the local hardware store, dry cleaner, market, etc are gone.
Take a walk down Newbury Street and count all the empty storefronts-rents have been jacked to new levels that do not work for a profit based retailer. The owners can and will wait until the next marketing based retailer, ready to pay market + shows up and leases.
Manhattan
is also full of empty store fronts.
Greg seems to be spot on with
Greg seems to be spot on with the marketing function of national/internation retailers wanting to market their brands. However, having read the article, these seem to be high end boutiques, not hardware stores, dry cleaners and markets chasing the same demographics as the megacorps.
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