(post by BT) A client of mine received a newsletter today from a local Realtor. Looks like he targeted commercial property owners in western Queens. Interesting notes, surely about retail situation on Steinway Street in Astoria. Here it is:

You can’t help but notice a suddenly massive amount of vacant stores in Astoria on Steinway. But “For rent” and “going out of business” signs are only half the story…

I mean there always had been vacancies on Steinway but I am talking about the busiest part - between Broadway and 31st Avenues… almost half the stores are vacant or already for rent, while existing tenants are on their way out of business! This used to be the cream of the crop spot to own retail. What happened? Who are these tenants? Not just your mom-and-pop shops (those have been driven out a while ago by unreasonably high rents). They are:

1) KB Toys stores gone belly up - filing for bankruptcy and leaving the new property owner of 30-83 Steinway St. (who purchased the property for $5,900,000 in September 2005) hanging out dry! And you thought “national franchise” tenant is solid, didn’t you?

2) Gap Kids, located at 31-02 Steinway is up for rent. No signs saying that, but our research says that Winick Realty Group is advertising the property for lease. Its owner purchased the building in 2003 for a discount price of $350,000! Well, that landlord will be fine!

3) Dr. Jays, NYC’s storied sneaker outlet, at 31-08 Steinway – is going out of business!

As if that wasn’t enough, Western Beef at 36-12 Steinway… is “FOR LEASE”!!! 27,000 sq ft at $30 per sq ft. Hasn’t it been there for at least 20 years?!

In just one evening, within two most desirable blocks in Steinway, we’ve noted down the following locations vacant, or with “for lease/rent” or “for sale” signs:

31-52 Steinway Street

31-61 Steinway Street

31-49 Steinway Street

31-31 Steinway Street

30-86 Steinway Street

30-83 Steinway Street

30-75 Steinway Street

30-59 Steinway Street

30-27 Steinway Street

How did Steinway get this way in such a short time? Economy? No, this trend of businesses closing as they are unable to pay the ridiculous rents unjustified by foot traffic and spending started over two years ago, well before we hit the recession. Bad business? More like it!

If retail rents are going down, does it mean  more small businesses will once again be able to open up and stay in business?