The latest data from the New York City Department of Finance shows that since the outbreak of the pandemic, the vacancy rate of retail stores in New York City has almost doubled, causing a series of quality of life issues and public safety concerns.
According to statistics released by the New York City Council’s Small Business Committee at a meeting on April 17, before the outbreak of the pandemic in 2019, the city had only a 6% vacancy rate. This year, that rate has increased to 11.2%, nearly doubling. Jessica Walker, President of the Manhattan Chamber of Commerce, testified at the meeting, stating that the actual vacancy rate is much higher due to the rampant presence of illegal marijuana shops masking the seriousness of the problem. Councilwoman Vickie Paladino also expressed concern, noting that there are more than 30 tobacco shops in her district alone.
Various attendees at the meeting had different perspectives on the surge in retail vacancy rates. Calvin Brown, Deputy Commissioner for Community Development at the Small Business Services Agency, attributed it to outdated zoning regulations. Walker believed it was due to the rise of e-commerce and remote work. Councilmember Gale Brewer pointed out that some owners of large retail buildings prefer to keep them vacant in hopes of attracting chain stores.
Chairman Oswald Feliz of the City Council’s Small Business Committee emphasized that the increase in retail theft has led to closures of businesses, exacerbating the vacancy problem. A report released last month indicated that retail theft cases in New York City surged by 64% from June 2019 to June 2023. According to the latest data from the New York City Police Department, retail theft cases in the city have increased by over 6.5% compared to the same period in 2023, reaching 14,910 cases.
Brewer and Feliz pointed out that the surge in vacant storefronts has created a series of quality of life issues, such as homelessness, garbage, graffiti, hurting nearby businesses, and causing insecurity for community residents.
As for solutions, Tian Wineberg, Director of the City’s Office of Small Business Services, stated that Mayor Adams is taking the issue of retail theft very seriously and is stepping up enforcement efforts. Deputy Commissioner Brown of the Small Business Services Agency mentioned the “City of Yes” initiative proposed by the mayor, which aims to eliminate zoning restrictions to allow for the reutilization of vacant storefronts. Brewer advocated for taxing owners of vacant storefronts, while Paladino expressed opposition.
Editor: Chen Wenyi