Q&A for the Corner Office
Despite the bleak reality of Circuit City’s filing Chapter 11 bankruptcy, David Livshin, president and CEO of The Dagar Group Ltd. in Fishkill recognized possible perks for existing retailers.
What retail real estate trends are you noticing and what implications do big box shutdowns have for the Hudson Valley?
Livshin: “It is generally acknowledged from those of us with leasing companies in the Northeast that things have slowed down dramatically since the fall. Initially, during the late summer months, the rise in the cost of fuel oil definitely had small business owners and consumers alike thinking about how they were going to spend their money.
“At the same time, lenders were becoming more stringent in their qualifications for business loans and that had an impact on the ability of smaller retailers including regional and mom and pops to expand. The saving grace we found is that on projects nearing completion we had recommended that stores be built in the 1,000- to 1,200-square-foot range. These smaller spaces are easier to lease and require much less in investment than larger spaces.
“We also had seen a trend of smaller retailers moving out of substandard existing spaces into newer spaces. This is the first time in many, many years that you can drive up Route 9 in Dutchess County between Fishkill and Poughkeepsie and actually see vacancies. But again, the vacancies are occurring in smaller, older unanchored properties.
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