Another Mom & Pop shop in BoCoCa closes its doors

This week we heard that #acookscompanion – – a solid #cobblehill #brooklyn neighbor and stalwart retailer on #Atlanticavenue between Court & Clinton for over 2 decades will be closing it’s doors … all of their stock is now heavily discounted so shop early and often if you read this post and need a kitchen utensil ASAP.

A common misconception in real estate is that “the landlords drove the poor retailer out of business by “jacking” up the rents too high” …  let’s clear up this misconception shall we … rent is one of the single most expensive line items on any profit & loss statement and equals from 4 – 10% of the overhead cost in any viable and sustainable enterprise. It’s a BIG number we grant you … but taken over a year long view instead of a snapshot … rent is more predictable than the cost of liability insurance, advertising, real estate taxes, labor (minimum wages, workers comp & disability & now the family leave act) and the cost of materials. All of these variable costs add up to 30% – 60% of the overheads costs … 3x, 4x, 5x more than rent.

Plus … rent is set for a medium to long term … every landlord has to stick to the terms of the lease because he/she or they are bound by law … nobody can renegotiate a #commerciallease in yr 3 of a 5 year lease just because they feel like it … or use the excuse that they are the new owners of the property or “their” cost structure has changed & they need to pass it on (good luck with that one in front of a judge) … if you buy a building & a commercial tenant has a super sweet deal … tough luck – what are your options ? …walk away aka default on your loan obligations, spend MORE money & invest in other parts of the building or spend MORE money “buy out” the tenant … a lease buy out is like Father Christmas, Chanukah Harry & the Tooth Fairy all showing up at your doorstep on your birthday 😀

So the next time you hear of a mom & pop shop closing … please enlighten the cynic who lambasts the landlord/landlady and accuses them of unbridled greed. The greed part is when the lease is being negotiated … and every tenant shops around and explores their alternatives (and monthly rent) before deciding on one property over another … have you every heard of a retailer who signed a lease for the FIRST and ONLY store they viewed ? It’s a brokers nightmare … we want to manage our customers expectations from Day 1 so that when we negotiate & present a fair lease after weeks and months of unpaid effort with a decent landlord they will move forward with confidence in their ability to make a tidy profit in their new retail location.

Now … next up is a question … which nice folks who need to “pay their bills” and “feed their families” will open up next in 197 Atlantic Avenue ? .. Smith Hanten intends to wish them well & spend money if their merchandise appeals to us … actions speak louder than words & you can’t pay your rent with likes and shares …  #amazon, #eBay, #walmart, #Etsy … none of these #unicorn companies are going to make our #brownstonebrooklyn #bococa community any stronger … in fact these shopping platforms make it weaker overall because we stop talking to each other and neglect to #shoplocal and #supportyourneighbor

One thought on “Another Mom & Pop shop in BoCoCa closes its doors”

  1. Well said. Our schools have let us down, critical thinking is gone. We need to see beyond the obvious, and whats been thrown at us by media all to ready to simplyfy for the masses.

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