I know an esthetician who owns a business that is very popular in the Union Square area. The business has been in operation since 1970, and has weathered all sorts of ups and downs.
Last week, she and I were talking about how the Union Square Café was closing because the rent became too damn high, and she said following:
“My ten-year lease was up six months ago, and they forgot to raise my rent and issue a new lease. I am not sure what happened, but I am counting my lucky stars. I know my rent will go up to a level that I cannot afford anymore, plus I will owe the extra back rent for the past 6 months, which will be too much. So every time I open my rent invoice I hold my breath.”
I asked her, “What are you going to do when that happens?”
She said, “I have been looking around for two years, and I can’t afford anything in Manhattan that is convenient for my long time customers, so I will be closing the business for good.”