New York retail spaces were a mainstay of life throughout the city. However, with a big shift in retail trends, landlords and property owners are taking a new approach to improve traffic and generate revenue.
The Shift in New York Retail Spaces
Technology has been a major influence on the shift in how New York retail spaces are used. Storefronts which were once bustling with foot traffic are now being abandoned. E-commerce has changed the way we shop. People are ordering things online, even turning to box subscriptions for meals instead of going to local grocery stores. In a strangely ironic twist, Apple Stores still have a big physical presence, which we will discuss in the next section. With online shopping, people remove the need to fight crowds while simultaneously reducing the risk of venturing out for a product that isn’t in stock. Smaller retailers are finding it harder to generate revenue at levels which justify keeping a retail space in NYC, so many are letting their leases run out. Property owners are selling retail spaces, while others are coming up with new and creative strategies to keep these properties relevant despite new market shifts.
A New Focus on Arts and Entertainment
Property owners are taking a more creative approach to generate revenue with New York retail spaces. The reason Apple Stores still draw lots of foot traffic, despite selling products which can easily be purchased online, is because of the aesthetic appeal. Taking a cue from Apple, property owners are converting New York retail spaces to venues for artists, movie theaters, pop-up restaurants, fashion shows, and combinations thereof. The philosophy is simple. If people can purchase products online, then there is no reason to spend time or money outside of their homes and apartments. However, people are willing to pay for experiences. By offering exclusive and time-limited experiences, people will be attracted to a space. Artists and entrepreneurs are willing to pay to rent spaces for a month, a week, or even a single night to build their audiences and reputations and make sales in the process. The idea of “Main Street” hasn’t disappeared – it’s simply taken on a whole new look.
Express Capital Financing offers solutions to property owners who want to give New York retail spaces a makeover to attract a new breed of tenants and generate revenue in the new economy. Contact our offices today to learn more.