Quote:
Originally Posted by buggyone
Not too long ago, I was talking with the owner of City Fire and he told me of his many experiences of owning restaurants. He said the Developer is the second best landlord he has had in over 30 years. Speaks pretty good when a tenant gives that kind of a statement.
BTK is absolutely right. It is not the rent that causes some businesses to fail.
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No, rent is not the reason that businesses fail, but high rent will contribute to higher prices. You are going to pay more for a cup of coffee outside the busiest subway station in the world than you are in the middle of nowhere Kansas. The other side of the coin is that the reason that the rents are higher is that people are wiling to pay more for that cup of coffee because of the convenience of the location.
Prices in Manhattan are higher than a lot of places because the rents are higher. And the millions of people that live and work there are willing to pay more. So, location also contributes to higher prices and higher rents.
If prices are set too high a business will fold. And, if they are set too low a business will also fold. Economic 101.