Mainland Brands Entering Flushing Drive Up Rent Prices

Iris Bakery, a Taiwanese bakery operating on Roosevelt Avenue in Flushing for 15 years, is closing its doors at the end of this month due to a sudden increase in monthly rent from $25,000 to $50,000. It is reported that a brand from mainland China will take over the shop space. The owner of Iris Bakery, Lin Qingfu, expressed his disappointment over the rising rental prices in Flushing, which continue to be driven up by the influx of mainland Chinese brands.

Lin Qingfu mentioned that he has not yet found a suitable location to continue operating Iris Bakery. He lamented that the rent in Flushing has been increasing, forcing old establishments like his to shut down. Meanwhile, the new mainland Chinese brands are investing heavily in marketing, raising the question of whether they are in it for long-term sustainability or quick profits.

When Iris Bakery leased the shop space at the intersection of Roosevelt Avenue and Prince Street in 2010, the monthly rent was $13,000, gradually increasing to $25,000 after 15 years, with the lease expiring at the end of March this year. The Fujian landlord intended to raise the rent to $50,000, a cost Lin Qingfu could not bear. Subsequently, the shop space was quickly rented by a new mainland Chinese tea beverage chain.

The new chain store that took over is listed in Hong Kong and specializes in high-end freshly brewed teas and European-style pastries.

Lin Qingfu pointed out that in recent years, mainland businesses have been expanding into Flushing, particularly with mainland brands of tea beverage and hot pot restaurants, which have lower raw material costs and higher profits. He believes that the reasons for mainland businesses entering Flushing include the increasingly competitive business environment in mainland China, prompting businesses to seek opportunities abroad.

He expressed concern over the focus of mainland businesses on marketing rather than product quality, citing the oversaturation of flashiness and branding over substance. Lin Qingfu emphasized the need for a sustainable business model that prioritizes product quality over excessive marketing.

Regarding the escalating rental prices in Flushing, Lin Qingfu warned that the rapid increase could lead to a faster turnover rate for businesses, ultimately affecting the longevity and health of the local economy. He proposed that the local government should focus on improving the basic infrastructure of Flushing to enhance hygiene, urban aesthetics, and public safety.

On the other hand, Flushing’s district administrator, Yu Dansong, acknowledged the challenges faced by landlords due to rising property taxes and mortgages, which directly impact rental costs and pricing competitiveness among businesses. He observed the closure of long-standing stores and the short lifespan of new businesses, especially those mainland-owned chains that have struggled to sustain operations in Flushing.

In considering the future development of Flushing, Lin Qingfu highlighted the importance of leveraging the existing resources to improve sanitation, urban aesthetics, and public safety. He expressed skepticism about the potential benefits of projects such as the “Citi Field Metropolitan Park,” as he viewed the areas surrounding casinos as potentially detrimental to the local environment.

Conversely, Yu Dansong believed that the “Citi Field Metropolitan Park” project could benefit Flushing by attracting visitors to the area and stimulating local economic growth. He suggested that enhancing pedestrian pathways between the park and Flushing could facilitate increased foot traffic and commerce, thereby driving the development of the neighborhood.

In conclusion, the evolving landscape of Flushing reflects a complex interplay of economic pressures, cultural influences, and urban development initiatives. As stakeholders navigate these dynamics, the future trajectory of Flushing’s business community will be shaped by strategic planning, community engagement, and adaptive responses to changing market conditions.