Another Korean deli is getting ready to close after nearly 30 years at the corner of 92nd street and Broadway. The landlord raised the rent for K&S Market and it will shut down in a week or so, an employee told us. Among other things, the spot was known for its flowers, including unique items like Chinese lanterns.
Several local markets like it have closed in recent years as rents have risen and chain drug stores have begun selling more household items.
Thanks to Linda Rosenthal for the tip and photo.
I’ll miss having more bodegas, but K&S sold me spoiled milk on two separate occasions, and their flowers didn’t have good shelf-lifes. The market one block up on 93rd was more reliable with its food quality.
We were lucky to have two markets in the neighborhood with complimentary selections of convenience foods and fresh produce, but there was always confusion about which was Hans and which one was K&S, so we simply called them North and South Korea.
The fact is that there is absolutely no incentive for a landlord to rent commercial space as they can fully write off the value of the theoretical new rent from their business taxes whether they rent the space or not. It’s one one cruel ironies of NYC commercial real estate. That is why there are so many empty storefronts. The landlords just don’t care.
USFLifer:
That is not really correct. A income deduction, while helpful on one’s taxes never replaces lost income, it just softens the blow. No income is never as good as some income. The overall effective tax rate of the lost rental income would have to be equal to 100% or more. The IRS would never allow you to deduct a wildly inflated grand that no one has accepted or ever paid as a valid deduction to offset the tax effect of actual income from another location. I think it is more likely that the landlords, especially at these corner locations, are hoping for a giant payday from a deep pocket corporation who will sign a long lease and will never be able to get out of it. thus insuring a steady stream of income for a very long time for the property owner. Capital One paid rent forever on the closed bank at the corner of Broadway and 91st. It isn’t like a small mom-and-pop who can close, file bankruptcy, and never pay off the lease.
AND, to boot, the older guy who worked the register sometimes was so amazingly rude it was like a prank. I mean, not even a thank you. Just a grunt as he grabbed your money. Prices were insane. And I agree, the dairy was not nearly cold enough. BYE!
Yeah, I get the sentiment but am not going to mourn K&S in particular – always tried stopping in to pick up staples since it’s on my corner but 85% of the time it was spoiled or stale when I got home.
That said, it better not be replaced with a drugstore. This block is saturated.
Can anyone explain to me the math behind a commercial landlord’s decision to leave a storefront empty and unrented for years on end? It’s not like there are new businesses lining up to fill spots in the West 90’s & 100’s, yet there these storefronts sit – empty.
the math is pretty simple… they think when they DO rent it they can get 2x or 3x, or even 4x the price. they don’t want to sign a 5 year or 10 year lease at much lower rates.
there also might be some tax advantages to having it empty but this is not why they do it. however, this can lower the hit they take each month it is empty.
Thanks Bruce. Are they really getting that much? I’ve read where they’re raising 15%-20% but I’ve not heard 2x, 3x or 4x increase, at least in this area. Even so, when a storefront sits empty for 3-4 years, it still seems like the economics don’t make sense (unless the tax breaks mitigate it enough as you suggest)
It absolutely happens. In Chelsea, my commercial rent in a loft building – not even the ground floor retail space – went from $7,500 to$14,000 between 2008 and 2013. Then renewal for 2014 was to be $18,000. Won’t work for me, but no doubt some private equity backed start up will pay it. It’s a pain for sure but it’s okay with me. That’s what free enterprise is about. It’s up to me to figure out how to make rent work within the parameters of my business.
Lets stop waxing poetic about these places. Convenient with long hours? Yes. But most of them are dirty, the cashiers are surly, the perishables are usually at the end of their dates, if not post-dates. They are usually expensive. Want a candy bar for $2.50? go to one of these places. Would you ever by a sandwich from one of those dirty display cases? So stop the tears…..
Actually, the one up the street at 93rd (Han’s) is really nice – clean, nice produce and a good selection, nice people (always really nice to my kids). They are one of our favorite places in the neighborhood of any kind.
Noooooooo! It’s one of the few Korean delis in the nabe that carries POM among other things.
That said, as many here have noted, Han’s, on 93rd, is terrific. The fruit and veggies are fresh, there’s a good selection, and they are very nice. What’s more, I have enjoyed watching the Latinos who work there learn Korean, and the owner speak Spanish. Listening to a conversation in two languages, both I which I don’t speak, is one of the joys of living on the UWS.
Over the last couple of years, there have been a couple of beefy white dudes sitting outside, watching the door but not really doing anything productive. I always figured that the store was getting shaken down by those guys. I hope that wasn’t the case.