Last year was a rough one for businesses across the country. So how did Park Slope’s small businesses and commercial districts fare in 2011? And what can we expect in the year to come?
When the current recession began, owners and customers of locally owned stores, bars, and restaurants in communities like Park Slope believed they would be largely immune to the challenges that businesses felt elsewhere. For instance, the average home sale in Park Slope is just under $1 million — an indicator of the kind of disposable income in our neighborhood that could keep our commercial districts healthy, even in a recession.
Unfortunately, this assumption turned out to be largely untrue. According to the blog Here’s Park Slope (at www.heresparkslope.com), more than 50 small businesses closed in the neighborhood over the last 12 months alone. Some — like Aunt Suzie’s Restaurant on Fifth Avenue, and Leaf and Bean on Seventh Avenue — have closed after more than 20 years in business. (You can read about Aunt Suzie’s in our interview with owner Irene LoRe here; Leaf and Bean is currently looking for a new location.)
Clearly, Park Slope’s consumers were cutting back and making difficult decisions about how to spend their income, just like everyone else.
Despite the bad news, there are many positive indicators of a bigger, better year for 2012. According to the Park Slope Fifth Avenue Business Improvement District, the commercial vacancy rate along the avenue dropped steadily over the course of 2011, from more than 10% in January to approximately 7.7% in December. While a number of shops closed in early January 2012, new businesses have moved into or are rebuilding many of those vacant sites.
In addition, according to the Park Slope Patch website (at parkslope.patch.com), Park Slope shops saw a significant uptick in sales this holiday season, bringing them a much-needed income boost. This is great news in a time when big-box stores and online retailers provided deep discounts to consumers. Shopping local is not dead after all.
Last year got off to a rough start on Seventh Avenue with the loss of a private maintenance contract, which created a lot of negative press about dirty sidewalks and overflowing trash cans. The merchants of Seventh Avenue ended 2011 strong by distributing a District Needs Survey that will help the Park Slope Chamber of Commerce address some of the concerns neighbors have about the avenue. (The Chamber of Commerce is a coalition of small-business owners on Seventh Avenue and neighboring streets.)
The survey is on the organization’s website, www.parkslopechamber.com, and is open to everyone through early February. The Chamber of Commerce encourages residents to take part and help create a brighter future for Seventh Avenue.
Finally, love it or hate it, the Barclays Center arena is on its way. According to the North Flatbush Business Improvement District, the vacancy rate actually increased to 12% along the avenue in 2011 as rents rose in anticipation of the crowds that will soon be generated by sporting events and concerts. The BID has been working with property owners to fill some of these vacancies, and anticipates a 6% vacancy rate or less by the end of 2012.
Over all, 2011 was a complex year for local businesses and commercial districts, but all signs seem to point to a stronger 2012.
— Mark Caserta is a small-business, web, and social-media consultant. He works with both the Park Slope Fifth Avenue BID and the Park Slope Chamber of Commerce (Twitter: @markcaserta.)
from the Winter 2012 Civic News