2nd Ave Subway Wreaks Havoc To Retailers

A: Thanks to Curbed.com for pointing this article out. The 2nd avenue subway project is underway and causing pain for retail shops in the East 90's where construction workers are busy re-aligning electrical and plumbing systems so that the tunnel boring machine can be installed to build the subway tunnel. I discussed this scenario way back in late 2006 before the subway project begun.

In my post in November, 2006 titled : "2nd Ave Subway Work Set To Start":

What To Expect During Build: Streets to be completely demolished during the boring process and tunnel build. Local businesses on 2nd Avenue will have a rough time and will most likely go out of business temporarily with some type of city support program kicking into effect. A few years of loud noises, construction barriers, air pollution, and big time machines.

While it may seem so obvious, I got so many emails from readers after I posted this article stating stuff like "what the hell do I know about how it will affect business", and "wouldn't this bring more action to business because the area will get more attractive with the subway coming in", etc..Not sure why people got so upset, but they did.

According to NY Post (via Curbed.com):

Shop owners on Second Avenue between 91st and 96th streets complain that their sidewalk space has been more than cut in half by guardrails and concrete barricades that are keeping customers away. "It cut down my traffic tremendously," said Marcelo Ronchini, who owns Nina's Pizzeria on Second Avenue between 91st and 92nd streets. "I've lost 20 percent of my revenue."

John Ng, manager of Hokkaido restaurant, at the corner of East 94th Street, said, "Business has dropped at least $20,000 a month. We're trying to wait it out. What can we do?" And Vicky Schreier, owner of Rainbow Ace Hardware at 94th Street, said that her business, too, was down and she wanted the city, along with the MTA, to come up with ideas to help the shops.

"There is a significant drop in business," Schreier said. "We understand it's good for New York, the good of people, but it's not good for us."

Look, I view things very differently than alot of people out there, and I have no qualms telling it like it is even if that means I lose a deal here or there. I feel there is a lack of honesty in this business and buyers/sellers too often have to deal with broker babble and lies in an effort to convince them to either buy or sell immediately! Hence, the purpose of this site!

The 2nd avenue subway is a great long term project for this neighborhood and the entire east side of manhattan! Trust me, it is sorely needed to ease subway congestion and meet the needs of population growth that is expected. However, there is going to be growing pains with this massive infrastructure project and homeowners, business owners, and sellers will have their headaches to deal with. Here is what to expect:

Business Owners - As I stated over a year ago, businesses right in the heart of construction will be hurt. Traffic will be down, sales will be down, while costs will remain the same. Simple math. Hopefully there will be some aid to these struggling businesses so that they can make it through the 1-2 years of construction work that is expected in their immediate area. Once the tunnel boring machine is installed, sidewalks should be rebuilt and construction efforts will be much less obtrusive; but that is some time away!

Homeowners - A few years of obtrusive construction equipment, noise, dust, and limited sidewalk space and temporary walking routes. Yes, it gets very annoying after a while!

Sellers - Not a good time to be selling a property on a low floor with direct exposures to the 2nd avenue work going on. These sellers should expect to see un-interested buyers as a result of all this, and will most likely have to offer a discount to the prospective buyer who will have to deal with this nuisance for another few years. If you don't have to sell, try not to until the bulk of the work is completed. Other then that, not much I can tell you. Certainly, it is expected that savvy buyers may see these products as potential values if a seller must move the property quickly. Therefore, bids are likely to come in fairly low. If you are trying to sell one of these types of apartments right now and do get a strong bid, take it and run! Now is not the time to be greedy, and waiting to get that extra $10,000 could prove to be a mistake.

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