Right now, demand for retail space in New York is especially strong. That is why investors are undoubtedly interested RadioShack’s recent announcement that the company intends to close 1,100 U.S. stores. While the exact locations of those stores weren’t reported, New York’s generally high rents are likely to make many of the city’s RadioShack locations ripe for closure.
In fact, the electronic retailer is one of the largest chains in New York City. Manhattan has 36 locations, along with 86 more throughout the other boroughs. The spaces occupied by the stores are relatively small, so a variety of kinds of businesses could be in a position to move in.
As you might expect, the exit of RadioShack stores is certain to lead to higher rents for the new occupants. However, with demand so high, landlords aren’t likely to have too much trouble finding tenants.
The downsizing of RadioShack reminds us of other issues that can lead to landlord-tenant disputes — problems such as tenant bankruptcy or nonpayment of rent. Ideally, landlords and business tenants could always resolve their differences outside of court, but the reality is that litigation is sometimes necessary to settle a dispute.
In order to minimize the costs for landlords and tenants alike, negotiation skills and knowledge of New York real estate law are extremely important. Whether you’re dealing with retail space, medical offices, restaurants or any other kind of business, you may want to consult with a real estate attorney with experience in resolving disputes over commercial property.
Source: Crain’s New York Business, “RadioShack’s troubles spell opportunity for some,” Bilal Iftikhar, March 4, 2014