Rent Spike Forces Heartland Brewery To Close

It is sad to see such an integral part of the Union Square neighborhood closing. Heartland Brewery at 35 Union Square West opened in 1995, and as of yesterday was forced to close due to a large rent spike. Jon Bloostein also has four other brewery locations as well as Flatiron Hall, Houston Hall and Guy’s American Kitchen and Bar in Times Square, but there is something about this specific closing that makes it eerie for the restaurant scene in Union Square; if a high-profit brewery with a large turnover can’t make it, does that mean all restaurants are doomed?

Danny Meyer, who will be closing the epic Union Square Cafe at the end of this year, wrote that the rent had tripled for the 6,600 sq ft space. Rumors are that the other high-volume touristy spot in Union Square, Blue Water Grill, may also be facing the same fate. As for the Heartland Brewery, Bloostein said the rent spiked to $2 million for the full space, meaning $450 per square foot. According to a real estate broker who focuses mainly on spaces for the hospitality industry, the average asking rents in the Flatiron/Union Square area are on average $275 per square foot. This creates a very tricky atmosphere for traditional restaurants.

To read more about the closing of the iconic Heartland Brewery in Union Square, click here

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