Dollar stores once again lead retail openings
The dollar store brick-and-mortar renaissance continues, as chains like Dollar General and Dollar Tree are enjoying a strong surge in new openings across the U.S., the Wall Street Journal reported. Both chains will have opened a combined 1,300 new locations by the end of the fiscal year, continuing the momentum from 2021, when nearly half of the 3,600 new stores that opened nationwide were no-frills discount shops. In addition, Five Below and TJX Co., the parent company of discount stores such as TJ Maxx, opened 100 new stores in 2022, the Journal said. Many dollar stores serve rural locations that other retailers ignore and operate where costs of labor and operations are lower than other areas of the country, Piper Sandler analyst Peter Keith told the outlet. “It’s about providing convenience and value to customers that live in more remote areas,” Keith told the Journal. “They really can outcompete the local grocer in a smaller market.” While inflation has played a significant part in variety stores’ popularity, millennials and Gen Zers — predating the COVID pandemic — have sought lower prices for essential goods, including groceries, the outlet reported. “We are aggressively expanding our offerings of protein, pizza, breakfast items and family sizes at price points [to] meet their budgets,” Michael Witynski, the CEO and president of Dollar Tree, told analysts in a November earnings call, Quartz reported. Dollar General has nearly 19,000 outlets in the U.S., while Dollar Tree (which acquired Family Dollar in 2015) has about 16,000 locations, according to WSJ. The growth of dollar stores doesn’t appear to be waning any time soon. Dollar General’s CEO Jeff Owen told investors earlier this year that the sector could add another 16,000 stores, the Journal reported.
Domain’s Greenpoint residents withhold rent over gas, heat issues
Domain Companies is contending with gas and heat issues at its luxury multifamily building in Greenpoint, where some residents are withholding rent after leaks. Eighty-seven residents of the 210-unit building at 1133 Manhattan Avenue have withheld rent in recent weeks, Gothamist reported. Dissatisfied tenants are exploring legal options for securing rent cuts and concessions from Domain after management told residents in October it was not ready to offer concessions until it understood the scope of the problems. Some residents alleged frequent gas leaks causing long-term health problems, such as damaged lungs. Many are fearful of using the heat, which was turned on earlier this month after a dormant period. Management has loaned some tenants hot plates to cook, but require them to be returned after meals. The cooking gas remains off, with Domain telling tenants it expects work to be done “very soon.” Domain is benefiting from the 421a tax program, which expired in June and cooled the multifamily development market. Under the terms of the program, Domain received a tax break for setting aside half of the units of the 2014-built building for affordable housing. The developer last year paid a measly $100,000 in property taxes. The Greenpoint building was the site of a crowded housing lottery when it opened. Nearly 60,000 people applied for the 105 affordable housing units available. Some of those who won the lottery are expressing trepidation about speaking out against problems at the building and withholding rent, fearful of losing their affordable homes. Elsewhere in Brooklyn, Domain is busy with development. The firm in August closed on a $142 million construction loan for a 270-unit in Gowanus, which already secured its own 421a tax abatement. The collaboration with Vorea Group will include 25 percent of units set aside for affordable housing.
Tight Christmas: Park Slope townhouses lead Brooklyn’s contract chill
‘Twas the week before Christmas and all through the market, only a few Brooklyn buyers were stirring for luxury homes to target. Just nine homes asking $2 million or more went into contract last week, according to Compass, down from 12 homes that went into contract the previous week and 19 homes the week before that. The priciest property was 282 Garfield Place in Park Slope, which was asking $8.5 million. The five-story home has six bedrooms and five bathrooms across 4,600 square feet. The 20-foot wide townhome also has European white oak flooring throughout the property and a gas fireplace. The second most expensive property to enter into contract last week was 29 Prospect Place, also in Park Slope. The last asking price on the five-story brick townhouse was $4.8 million. Built in 1920, the 3,200-square-foot home has five bedrooms and five bathrooms. The property has a roof deck, chef’s kitchen and a terrace overlooking the garden. Of the nine homes that went into contract, six were townhouses and three were condos. The contracts had a 2 percent average discount. The homes combined for $32 million in volume with an average $1,376 per square foot. While total deals and deal volume decreased from the previous week, the average price per square foot rose by nearly $200. The average asking price was $3.6 million, while the median asking price was $2.5 million. The typical home spent 72 days on the market.
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