Found has been Lost

[ron_newman]

Found, the used clothing consignment shop at 255 Elm Street, has closed. Someone identifying himself as the owner was standing outside a few minutes ago, and he told me that the landlord is "a greedy jerk who jacked up the rent, and is not a good person." He also said the shop had suffered from shoplifting. He hopes to find a new location where he can reopen it.

Comments

[belt cruz (from livejournal.com)]

The issue is that he lures people in at a lower sustainable rate with false promises and then jacks the rent up to 16k when the first part of the lease ends.

The book store guys will tell you exactly what happened. Granted their industry was dying but I have heard first hand some really heinous stories.

[achinhibitor.livejournal.com]

The issue is that he lures people in at a lower sustainable rate with false promises and then jacks the rent up to 16k when the first part of the lease ends.

I've heard similar stories about other landlords. Certainly I'd expect a priori that landlords would offer much better rates to new tenants than they would to established ones.

But what's the point? At some point, it's cheaper to move to a different space than to pay the new, higher rent in your current space -- and stick the landlord with years of lower rents in the lease he has to give the next tenant. That's the bargaining leverage you use to cap what your current landlord demands in the renewal lease. Presumably every retailer knows this game and knows how to cope with it.