Park Slope 'Optimistic' About Fifth Ave's Empty Storefront Crisis

PARK SLOPE, BROOKLYN — As Park Slopers flock to Fifth Avenue's outdoor dining oasis this spring, they might notice a welcome change from when the Open Street closed in December — more businesses.

A record number of empty storefronts on the main corridor brought on by the coronavirus crisis last year have slowly but surely started to fill up, according to new data from the Business Improvement District.

In all, 14 new businesses have opened on Fifth Avenue since Patch's last count in October, when the vacancy rate stood at the highest it has been since the Business Improvement District started tracking it 11 years ago. That number is three times higher than the number of full storefronts that became vacant during that time.

"We have every reason to be optimistic — things are filling up," BID Executive Director Mark Caserta said. "There's plenty of reason for all of us to [believe we'll] find our way through this."

The new count, which includes storefronts from Dean Street to 18th Street, means the corridor's vacancy rate has dropped a few percentage points since its 13-percent high, Caserta said. The BID is still working on calculating an exact number.

While an improvement, though, the crisis is not over.

The vacancy rate has not returned to pre-pandemic levels, when Fifth Avenue was still considered a hot spot for vacant storefronts. The current vacancy rate is now hovering near the last time empty storefront levels peaked during the Great Recession.

A Closer Look

Of the 14 new businesses that have opened since October, four were already in the pipeline during the time of the last count, when a total of 66 storefronts stood without a tenant on the corridor.

Now, 60 storefronts on Fifth Avenue stand completely empty. That includes four storefronts where the BID has noticed construction, meaning a new tenant might be on the way, though it is not yet confirmed.

Another four storefronts have confirmed with the BID that they secured a new tenant, but haven't opened yet.

The BID also tracks several storefronts on side streets. As of the April count, five were vacant, including one that appears to be under construction.

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

What's Pulling Them Through

As far as the reason behind the slowly-dropping vacancy rate, Caserta credits several financial boosts businesses have gotten in the last few months.

Among those are rent deals that landlords have been more likely to make with tenants as the coronavirus crisis barrels on. Many landlords who were holding out at the start of the crisis have realized compromises are needed to hold onto a tenant, Caserta said.

That trend has been true across the borough, said Randy Peers, president of Brooklyn Chamber of Commerce.

"Our data shows more and more landlords overtime are offering concessions — quite honestly they’re afraid they won’t have anybody," Peers said. "They’d rather have half a loaf than wait out for a whole loaf that will never come."

Another factor specific to Park Slope has been its Open Streets program, which has boosted restaurants in particular as they expand outdoor dining. The vast majority of new businesses opening on the corridor have been eateries.

"Some of them told us they chose Fifth Avenue after seeing Open Streets," Caserta said.

Tied to the Open Street, which takes local organization to run, are the other services the BID offers. Caserta said new business owners have seen the support a BID can provide as a bonus to opening in the neighborhood.

Again, the trend reflects what is going on throughout the borough. Peers said streets with BIDs or a merchant association were in a "much better position to survive the crisis than if they didn’t."

In that way and others, Park Slope is one of the lucky ones.

Factors like BIDs, Open Streets and being in a wealthier neighborhood where residents have more disposable income mean places like Park Slope are quicker to rebound from the vacancy crisis than other lower-income neighborhoods without the same support, Peers said.

"It really is uneven," he said. "In many cases it was the luck of the geography.”

The Chamber of Commerce — which has recently toured 34 commercial corridors across the borough — is working on providing that support to areas without their own BID, Peers added.

More On The Way

A big part of rounding the corner on the vacancy crisis will be the simple fact that cooped-up New Yorkers will be flocking again to local businesses as the economy opens up and more vaccines get in more arms, the officials said.

Park Slope has seen one of the highest vaccination rates in the borough since the start of the distribution of the shot. As of Friday, more than 60 percent of residents in both of Park Slope's ZIP codes had gotten at least their first dose, according to city data.

That boost is already showing to be especially true for restaurants.

"There’s this pent-up need to want to get out and do things again — we all want to go out, and eat, and dine and enjoy each other’s company socially," Peers said.

Businesses will also get help rebounding thanks to federal and state aid packages that just recently passed the legislatures. Both Peers and Caserta agreed that while more still needs to be done, the relief is a welcome lifeline for struggling businesses.

"I’m hoping between that and the economy picking up, everyone will just barely hold on and pull through," Caserta said. "It’s going to take a while, but we’ll get there."