Spending Study Shows Negative Impact of Sidewalk Sheds on Local Businesses

Mayor Eric Adams discusses the negative impact sidewalk sheds can have on local businesses. Image Credit: Michael Appleton/Mayoral Photography Office.

On August 14, 2024, New York City Mayor Eric Adams announced the release of a new study that examines the effect sidewalk sheds and scaffolding have on Manhattan businesses. This study was commissioned by New York City and conducted with Mastercard.

The study evaluated aggregated spending averages from Mastercard. The current data showed that cardholders spent between $3,900 and $9,500 less each month at businesses located in buildings with sidewalk sheds. The most negatively affected establishments were restaurants and bars, reporting a 3.5 percent to 9.7 percent decrease in weekly transactions in the six months following shed construction.

Last year, the Adams administration began its “Get Sheds Down” program that consisted of nine initiatives aimed at compelling building owners to maintain sidewalk sheds and scaffolding and remove unwanted structures. The goal was to reduce unnecessary long-standing sidewalk sheds in New York City and improve the design of necessary sheds and scaffolding. Since the program was launched, 173 miles of existing sidewalk sheds have come down citywide, and 259 sheds have been removed that were standing for over five years.

New York City Mayor Eric Adams said, “Too many businesses throughout New York City have been shrouded by hundreds of miles of sidewalk sheds and scaffolding, some of which have been up for decades. “Those sheds may have gone up to keep people safe, but they’re still up because it’s cheaper for building owners to leave them up than to fix their buildings. That’s bad for public safety, bad for our city, and, as this study shows us, bad for business, too. We’ve already taken 173 miles of sheds down in the past year, and the package of bills we’re working on with the City Council will allow us to flip the script so repairs get finished, sheds come down, and storefronts can shine again.”

Deputy Mayor for Operations Meera Joshi said, “If left up too long, scaffolding is dank, dark, and, now for the first time, we know in a dollars-and-cents way, depressing for businesses’ bottom lines. Scaffolding is critical for safety, but when it is used instead as a Band-Aid, it becomes enemy number one for a city otherwise growing more vibrant by the day. With Mayor Adams’ ‘Get Sheds Down’ plan, we are attacking longstanding scaffolding on all fronts: enforcement, design, and refining our building inspection cycle.”

By: Chelsea Ramjeawan (Chelsea is the CityLaw intern and a New York Law School student, Class of 2025.)

 

 

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