4 ms·

I know that in NYC a number of restaurants I liked have gone out of business because they couldn't handle the increasing cost of rent as building owners look at

by troupe 6y ago

I know that in NYC a number of restaurants I liked have gone out of business because they couldn't handle the increasing cost of rent as building owners look at how much place like Apple are willing to pay for prime shopping locations. Extremely dense areas like NYC are places where this seems like it might actually be the most cost effective not only because the high cost of rent but because you could have multiple kitchens to reduce the distance delivery drivers have to travel...and these kitchens wouldn't need to be in the prime shopping locations. But I doubt it is going to be as big of a benefit in places like Oklahoma City, Omaha, Houston, etc.

raiyu 6y ago
This is true and has been going for most of the recovery post 2010. However with the pandemic and a significant amount of people moving out of the city, coupled with retail closures and bankruptcies hopefully this rent gouging will come to a natural end. The NYC real estate market is going to shed quite a substantial amount of value over the next 3-5 years and very likely prices will drop considerably. Perhaps 30-50% especially at the high end. The lower end will be a bit insulated because of demand and also because the prices there haven't seen as much of a run-up as the higher end apartments.