Coronavirus Crisis Doubles Empty Stores On Park Slope's Fifth Ave

PARK SLOPE, BROOKLYN — For years, empty storefronts plaguing Park Slope's main commercial corridor had been creeping up, hovering just below the vacancy levels of the 2010 Great Recession.

Then the pandemic hit.

The coronavirus crisis has pushed a growing vacancy crisis on Park Slope's Fifth Avenue over the edge this year, more than doubling the number of empty storefronts along the corridor and spiking vacancy rates above Recession-level highs, a Patch study found.

Now, about 13 percent of all businesses on the street stand empty, the highest the rate has been since the Business Improvement District started tracking it 11 years ago. In 2010, it was around 10 percent. Pre-pandemic, it hovered around 8.

"It's definitely driven by the coronavirus crisis," BID Executive Director Mark Caserta told Patch.

"It's 'Can they come up with the money to pay their back rent they hadn't been paying when they were closed? Can they pay their bills and pay their staff?' Obviously, that wasn't the case for a lot of them."

Patch surveyed the vacant storefronts from Dean Street to 18th Street and worked with the BID to get a handle on the scope of the crisis. The count follows a similar study about the vacancies Patch completed last summer.

In all, there were 66 vacancies on Fifth Avenue as of Oct. 20, a staggering jump from the 27 stores that stood empty August of last year.

The number of new businesses moving in has also slowed to a near-halt. On top of the 66 vacancies, there were five storefronts that have secured a new tenant but haven't reopened yet.

Last year, there were 18 new businesses on their way.

The BID also found that seven stores on Fifth Avenue corners, whose addresses technically fall on a side-street, are vacant.

Here's a look at where all the vacancies are (red marks storefronts with a new tenant):

Boutiques Go Under, Restaurants Hold On

While no business is immune to the financial strain of the coronavirus crisis, the pandemic has hit some types of businesses harder than others.

In Park Slope, Caserta said one of the biggest losses has been among small boutiques, particularly a group of women-owned clothing or accessory stores that used to line the corridor.

Last year, the BID hosted a shopping crawl that included 12 women-owned boutiques along Fifth Avenue. Today, only half of them are still open.

"There are six of them left now," Caserta said. "Unfortunately they were threatened before the coronavirus because some people like to shop online."

An industry that has been less hard-hit — albeit still struggling — has been the neighborhood's restaurants, Caserta said.

As beloved eateries across the five boroughs struggle to pay bills with only a fraction of their usual customers, Park Slope Fifth Avenue spots have been blessed to become a destination under the city's Open Streets: Restaurants program.

The BID closes more than 20 blocks along Fifth Avenue to cars each weekend to allow restaurants to set up more tables in the street. Caserta said the program has doubled daily revenue for many of the eateries.

"Restaurants have a lot of challenges, but they have been holding in there by having outdoor dining," he said.

Is Help On The Way?

Lawmakers and business owners alike have been searching for ways to curb the retail apocalypse in New York City, including pushing for more aid from the federal government.

"What really needs to happen is the next round of funding," Caserta said. "Everyone could use a shot in the arm."

But short of help from Congress, officials have proposed more local ideas to bring businesses off the brink.

Among them is a proposal for "COVID-19 Recovery Leases" from Park Slope Council Member Brad Lander, who has been working with City Council and state colleagues on the plan. The proposal would offer property tax relief to landlords who negotiate new, affordable leases that forgive or disperse arrears and cap annual rent increases.

“It is heartbreaking to walk down 5th Avenue and see shuttered storefronts and “for lease” signs where familiar businesses used to be," Lander said. "Even before the pandemic, skyrocketing commercial rents were pushing people out of business, and now so many more are in crisis."

The bill is facing the New York State Senate's Rules Committee.

On the BID level, Caserta said the next lifeline could come through a similar program to Open Streets: Restaurants, but for the struggling retail stores.

The New York City BID Association, which includes all 76 business improvement districts, have proposed opening up the streets and sidewalks for retail use during the holiday season.

"This is critical make or break time for them," Caserta said.

The plan is under review by the mayor's office, he added, but Park Slope is considering setting it up on their already-open streets while they wait for more city guidance.

Spots Of Hope

Though not at the speed of past years, the coronavirus crisis hasn't stopped some businesses from moving into the neighborhood.

A convenience store, a diner, a bubble tea shop, a grocery store, an Italian restaurant and a few other businesses are among the new tenants that will soon bring new life to some of the street's empty lots.

Caserta said the BID has actually been surprised at how many have decided to move in.

But, with the pandemic's economic strain comes the possibility of rent deals, and exciting new careers for New Yorkers who may have lost their nine-to-five jobs.

"It's not that things are wonderful, but there’s a general trend of people looking for opportunities," Caserta said. "With all the destruction you’re also seeing these kind of green shoots popping up. If they can make it through this, they can make it through anything."

This is part of a series by Patch about retail vacancies in New York City. Read our coverage of the Upper West Side, Upper East Side and Hell's Kitchen, and stay tuned for a citywide story next week.