What's the deal?

Roger Chainani is a class act, that's why it's empty.

Looked into office space on the second floor there. I'm not surprised the bottom floor is so expensive. The second floor is incredibly overpriced for the quality and size of the units available.

Lets not forget the beautiful view of the low income housing right across the street!

When will a developer by that property and convert it to nice condos?

You know what I find to be the biggest joke, its the commercial real estate people that put signs on the windows expecting a different end result...I know that it means that they are going to put time into the space and use their connections but I always find it ridiculous...
If the price is way to high, then it will sit empty...maybe just maybe some sucker will try...And the owner is a joke...nothing like wanting the neighborhood to thrive..instead have one of the nicer corner stay stagnant...

For some reason I always thought this was a good location for a 2+ story clothing store. Even though I'd rather not go down this route a chain like the Gap, American Eagle or even Urban Outfitters could make it work. I would prefer something local but doubt anyone would pay that rent.

I haven't been inside in awhile and wouldn't know if the building could be made to function in that way.

I'm no means an expert in commercial real estate, but I have oftened wondered about this practice. So I spoke with someone who is an expert -- a manager for a large commercial real estate firm.

She confirmed for me exactly what I thought, which is that a landlord would prefer to have a place sit empty for months, even years, than lower the rent. I said, it's that sort of nuts -- wouldn't you rather have some income coming in than nothing at all?

She totally agreed with me, and said it IS nuts, but the landlord thinks that if he lowers the rent at any time, then he's going to be stuck with that lower rent for a long time. Also, he is worried that lowered rents will encourage tenants of other properties to negotiate lower rents on their contracts once they come up for renewal.

Her opinion was that they SHOULD do that, because it you don't lower the rents, the tenants will just go somewhere else that's cheaper.

So what that means is that Buffalo would be much better off to have a mutltitude of landlords competing to offer the best rent, rather than a few landlords who have all the space locked up and then act as oligarchs or monopolists.

My understanding is that he is a loathsome character who owns so much property he couldn't care less about making these spaces actually available.

Who are we to decide the price a private owner demands in rent? Frankly that is a reasonable rent. You also don't know what security deposits are, cost of utilities, other legal requirements of tenants, cost to build-out and fit the space (incurred by tenant), etc.

Free market. Maybe the deep pockets at B.R. should forgo a paycheck and provide subsidy if its that much of a cause.

what about off the wall? that has been vacant for more years than mode. does Roger own that building too?

I assume the laws of supply and demand don't apply to wealthy property owners?

Corner Bakery chain might be a possibility to compete with Panara

place has so much potential too...its sad

Ive personally had dealings with Roger Chanani many years ago and to say the least he is the definition of a greedy property owner that doesn't care about the Elmwood area. He's more interested in taking advantage of business owners that are trying to make the area better. He acts like he cares in the beginning and blows a lot of smoke. Then when he gets you signed into a lease his true self comes out. Don't do business with this guy unless you like being taken advantage of. He's a real piece of work and has no ethics with business dealings. Property owners have more to do with why businesses never have a chance to become successful.

The lease is NNN - tenant is responsible for utilities, property taxes, water bills, etc.

Atop he wants $1500 for FFE (furniture, fixtures, and equipment) + 10% of the tenant's monthly gross income.

I live just down the street from Mode. The previous occupant had tried to create a night-life venue there along with the upscale dine-in restaurant during the day. The problem I think is that it's too small a venue for either of those models. It's tiny. The rent sounds high to me, but I don't know anything about real estate prices. That corner's not a bustling section of Elmwood either. That whole corner of Elmwood is just not that active and is separated from the busier portions by a (verizon?) utility building, some residential housing, and a church. That's a lot of pavement to pound if you're perusing Elmwood, looking for something to do, like food or entertainment. There are a number of businesses and restaurants just past that section, but I think that people who are walking around the area where Spot is, get to the gap and just turn around thinking the busy section has ended. The owner of Off-the-wall claimed to have just found something better, which is why they closed down. The Elmwood Lounge just changed hands not long ago and is now "Milkies". "Epic" has changed hands multiple times over the past 5 years or so and so have a number of other places. Some upscale condos just got built on Utica over the last year that should create some foot traffic that could help an upscale/nightlife model for Mode, but I think that they're not catering to business all day-round. I think if they had a cheaper take-out model and had a menu for breakfast and lunch, something a little more main-stream, it might do better. The facade needs to be a little more inviting too. Anyone seated in there is rather exposed to passers-by, so it's not a very private dining experience. I just don't think upscale dining and nightlife are the right mix for that corner.

The simplest solution is for the city to reappraise at the landlord's stated market rate. Presently, the building is only assessed at 320,000 by the City of Buffalo.

At $66,000 NNN on just the restaurant and lets say conservatively another 24K from upstairs tenants. With a 10% capitalization rate, FMV is 900K. The city should at least be able to double the assessment in hopes that the additional tax liability motivates securing a tenant.

This whole block on elmwood from Mode to Louie's is absolutely disgusting. The litter is so bad outside the buildings along the sidewalks that it feels like you are walking in filth sometimes. Cigarette butts outside of Faherty's up and down the entire stretch and trash everywhere. The owner of the buildings, the tenants, and the city need to all wake the hell up and start taking a little more pride in the city and do their part to keep it clean and beautiful for all to enjoy...........then again, maybe it's also the people that are to blame for being so lazy and littering in the first place. Let's get some better looking garbage cans along the streets that are maintained on a regular basis and start holding building and business owners accountable for the appearances outside their storefronts and restaurants.

And I don't mean all business owners. There are several north of this block that do a great job of maintaining the sidewalks and areas around their storefronts.

As far as the building is concerned it would make a very nice spot for an elegant Parisian-stlye cafe; unfortunately it's a few blocks too far south on Elmwood. I don't think that area gets as much foot traffic to sell enough coffee and sandwiches to pay that much in rent.

In round numbers, to make the rent reasonable you'd need to do 100 dinners a night at $20, seven days a week. If the owner wanting 10 percent of the gross is correct, that number would be higher.

The next Urban Outfitters. Nuff sed

If the strip from Utica to Hodge is ugly, you haven't been in a bigger city than Elmwood Ave. you gotta have ugly sections, it's the balance of city life.

no balance, no fun. and shit... there are a ton of stupid companies in this world that can surely afford that corner.

i'll solve everyone's problems:

Tim. Horton's. Drive. Thru.

/discussion

There sure isn't a lot of dedicated parking either. There may be spaces nearby, but my guess is that lots of people use them for other places. Lots of good points made above!

I work in commercial real estate.

The reason why the owner is choosing not to lower rent rather than just renting for less is bc he feels like he will be devaluing the building/space. Landlords price their space based on what the other products in the surrounding area are going for. If the rent is that much more than a neighboring vacant space, it SHOULD be that much better. Yes, sometimes landlords are delusional, but if they have already paid off their mortgage, they can afford to sit vacant for months/years in order to wait for the right tenant. Some people are looking for that homerun tenant, that really nice restaurant that everyone wants to go to, instead of stooping low, lowering the rent, and putting some half-@$$ dollar store or chain food place. you have to realize that most landlords can afford to wait for the right tenant as they are usually pretty successful

And let's not forget about the opposite corner. Off the Wall. How long has that property been vacant? Same story perhaps? Owner asking too much and losing just as much.

Isn't this the original location of LeMetro Bakery? I rented my apartment from Mr. Chainani a couple doors down many years ago (and yes, he wanted to charge me extra rent on a couch that the previous tenant had been too lazy to move out if I recall lately), and I'd looked at an office suite above that storefront for a possible consulting business. It had been a dentist's office and at the time (again, over a decade ago) was in deplorable shape. LeMetro (if that is actually what was there - it was a great little cafe) did a good amount of business there, and it's the last real block with mostly storefronts until you hit Allen St., but it still gets good foot traffic. As for parking, there is a large lot directly next to the building that's city owned. I've never had a problem parking either in the lot or on the street close to the building. Is it worth that amount in rent? I guess it is if anyone is willing to pony up the $$ for it, but obviously nobody has yet.

Le Metro some of their bread was really good I used to buy it. Cafe Garangelos was good on Hertel next to Jonnys meats.

I was under the impression that landlords can write off these high rents as business losses for tax purposes, hence the rent remains high. Anyone in agreement with that thought?