Economics
Manhattan Landlords Cut Deals to Stave Off Vacant Storefronts
- Owners ‘are adjusting the way they do business,’ broker says
- The Kooples expected higher income from its store in Soho
Retail Landlords Forced to Cut Rents
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Just four years ago, the new owner of 115 Mercer St., a low-slung building in the heart of Manhattan’s Soho shopping district, managed to swiftly replace its tenants and lure retailers willing to shell out record rents. Now, that same landlord has to fight to get one of them to stay.
The Kooples, a French clothing seller, is threatening to vacate its space six years ahead of schedule if it can’t get landlord Thor Equities to cut the rent. With brick-and-mortar stores suffering from a retail industry shakeout, the company says it isn’t making enough money at the property and wants to focus on the web.