That's just historic leases and options to extend running out. Lets presume the commercial leases on storefronts are 10 years with an option for another 10. The

That's just historic leases and options to extend running out. Lets presume the commercial leases on storefronts are 10 years with an option for another 10. The holdouts that you are seeing signed leases in 1998-1999. They are still paying 1998-1999 rents with a slight YOY escalation. That's how Pearl River Mart was able to afford its place. 1999 that section of Manhattan was a dump. Here's a walk down the memory lane: * In 1997 my girlfriend at the time bought a two floor condo in Park Slope (2,400 sq feet) for $220,000. Her friends told her that she overpaid. * In 1999 a friend of mine had her generation skipping trust buy two buildings in Soho next to each other for $1.27M. They had to modify trust documents because with that buy trust was over exposed to real estate. * In 1999 apartments on Broome St in Soho were lofts with the kind of showers one would expect in the third world countries. 5-6 artists would live in one because they split 3000 sq foot one floor apartment 5 ways for a grand total of $1200/mo. Residential leases are simply too short which is why we do not see the massive spikes in rents as the lease is being re-negotiated the way we see them in commercial real estate.