Fighting for survival, more Brooklyn small businesses pay rent

Survey finds 28% missed August rent, down from 44% in April

New York /
Aug.August 24, 2020 03:45 PM
(Getty, iStock)

(Getty, iStock)

Brooklyn small businesses are increasingly paying rent and capitalizing on all the help that they can get as they miss out on some of the most profitable months of the year.

Twenty-eight percent of small businesses have failed to pay rent in August, according to a Brooklyn Chamber of Commerce survey of 234 owners. That’s the same as last month, but a marked improvement from 44 percent in April.

However, concessions from landlords have risen. Twenty-five percent of businesses said they received relief this month, up from 20 percent in July.

“Brooklyn’s business community is extremely resilient,” said Randy Peers, president and CEO of the Brooklyn Chamber of Commerce, in a press release. “The small businesses that make up our neighborhoods and sustain our communities are facing unprecedented economic challenges, requiring immediate support, grants and urgent rent relief if they are going to survive.”

But relief doesn’t mean these businesses aren’t in debt. Some 39 percent said they owe back rent.

Still, they ranked rent relief as the second most vital form of support, with 69 percent saying it is very important. The top ranked is grants, with 83 percent viewing them as very important.

The survey found Brooklyn’s small businesses are limping through the pandemic. Half said revenue has fallen more than 50 percent from 2019, and 53 percent said it would be a struggle to stay open over the next three months.

Rent isn’t the only hurdle businesses face. Enforcement of social distancing has resulted in 10 percent of businesses with a liquor license receiving fines or violations. A TRD analysis of social distancing complaints found that Brooklyn sees the most 311 calls of any borough, with 5,891 on commercial properties.

Nationally, 25 percent of mom-and-pop shops missed rent payments in July. National chains are doing better, with only 20 percent missing rent, according to a Datex Property Solutions report.

Contact Sasha Jones at [email protected]


Related Articles

arrow_forward_ios
53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
Starwood snaps up Florida affordable housing portfolio
Starwood snaps up Florida affordable housing portfolio
Carpenter & Company's Richard Friedman and 2 Canal Street in New Orleans (Carpenter & Company, Google Maps)
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
HUBB’s John McCarthy, Greystone's Thomas Ryan and 223-225 4th Avenue (Google Maps, Greystone, Getty)
HUBB NYC continues 421a spending spree, buying Park Slope building
HUBB NYC continues 421a spending spree, buying Park Slope building
120 East 39th Street (Hotels, Getty)
Short-term rental company taking over Midtown hotel
Short-term rental company taking over Midtown hotel
One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
Yotpo inks 30K sf sublease at Stellar’s One Soho Square
Yotpo inks 30K sf sublease at Stellar’s One Soho Square
From left: Landlord Steve Croman and White Horse Tavern owner Eytan Sugarman along with the White Horse Tavern at 567 Hudson Street (Getty Images, Google Maps, Instagram/boyfromnewyorkcity)
Croman sues White Horse Tavern owner for $650K back rent
Croman sues White Horse Tavern owner for $650K back rent
Blackstone's Stephen Schwarzman and 8 Spruce Street (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Twitter/AAsArchitecture)
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
A photo illustration of Tishman Speyer CEO Rob Speyer and 28-10 Jackson Avenue in Long Island City (Getty Images, Tishman Speyer, Google Maps)
LIC tenant claims Tishman Speyer violated rent stabilization
LIC tenant claims Tishman Speyer violated rent stabilization
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...