Wolf Road pushes against headwinds of the pandemic
Corridor remains busy, but some businesses that were struggling have closed for good
It is the Capital Region’s
Main Street, drawing travelers and shoppers from far and wide.
But the pandemic, which crippled the hospitality, restaurant and brick-and-mortar retail sectors, has hit Wolf Road hard.
Pier One stands empty after its parent firm went bankrupt. The Turf Inn, once a destination not only for travelers but for locals out for a night of clubbing, is dark and empty.
The Macaroni Grill and Reel Seafood are also gone.
While most of these businesses were already struggling before COVID-19, filling the prime real estate with new tenants is taking longer as businesses focus on survival rather than expansion.
“It’s going to be a changed landscape,” post-pandemic, said one longtime observer.
On a recent weekday, traffic remained heavy along the short strip. The parking lot at Trader Joe’s was full, and cars lined up at the Starbuck’s at Wolf Road’s north end.
Even during the pandemic, Wolf Road remains a busy place.
“Wolf Road is one of the unique addresses in the region,” said Mark Eagan, president and CEO of the Capital Region Chamber of Commerce. When he asked one developer why it had invested heavily and was renovating an office building, Eagan said he was told “the region only has one Wolf Road.”
But many businesses can’t avoid the impact from the pandemic.
Hotels in particular face a unique challenge, with travel collapsing as people stay home.
Albany International Airport, just west of Wolf Road, has seen traffic plummet by 75 percent, said spokesman Doug Myers. Airlines, which failed to get a second round of federal support, have cut flights and staff.
New York has restricted travelers from more than 40 states with high rates of COVID-19 infections. And with the limits
on large gatherings, the meeting and convention business — the bread and butter for the larger hotels — has dried up.
Some, such as the Desmond Hotel and Conference Center, have accommodated students from nearby Siena College as it seeks to maintain social distancing standards.
Some hotels along Wolf Road were struggling even before the pandemic hit. When Colonie Town Supervisor Paula Mahan held her 13th annual State of the Town address at the Red Lion hotel in January, the pandemic was less than two months away. By May, the financially struggling property, for many years known as the Turf Inn, was closed for good.
Other hotels also face financial challenges. About half the debt held by hotels in the Albany metro — much of it taken on during a years-long expansion that saw the region add dozens of new properties — was delinquent, according to data compiled by industry analyst Trepp, the Times Union has reported.
Other hotels that had planned renovations or expansions have taken advantage of the lull in business to get those projects completed more quickly, said
Jill Delaney, president and CEO of Discover Albany. Among them, The Desmond, as well as the Hotel Trilogy, both on Albany Shaker Road on the west side of the Northway.
“Our hoteliers took lemons and made lemonade,” she said.
With hotel occupancy rates at just 39 percent of capacity, many are working to cut costs.
The Desmond sought, and received, a $400,000 tax break last week from the Colonie Industrial Development Agency as it works to complete renovations for an affiliation with IHG, the Intercontinental Hotels Group.
Occupancy limits and social distancing requirements are also hurting restaurants. The million-dollar question is, will diners come in from the cold when winter arrives?
“What’s the comfort level going to be for people going inside?” asked one industry observer.
Early on, restaurants like P.F. Chang’s and the Cheesecake Factory at Colonie Center were able to offer meals to go, thanks to exterior entrances at a time when interior mall spaces were closed. But food court tenants were out of luck.
The picture is brightening however, thanks to the reopening of movie theaters this weekend.
Dinner and a movie will be possible once again after Regal Cinemas, the largest theater operator in the Capital Region, said it would reopen its theaters.
Brick-and-mortar retailers were facing challenges from online shopping services well before the pandemic, said Mark Castiglione, executive director of the Capital District Regional Planning Commission, whose offices are along Wolf Road. He believes those challenges may accelerate.
Many consumers have embraced online shopping, and delivery services, from Fedex and UPS to the U.S. Postal Service, have become more adept at getting packages quickly to their destinations.
Castiglione said shopping malls already were evolving to adjust to the decline of retail.
The Capital Region’s two major malls, Colonie Center and Crossgates, have diversified, offering increased entertainment options.
“Malls of regional significance have been able to succeed in the face of overall decline,” he said.
Castiglione said the pandemic and the almost overnight switch to work from home have further clouded the picture.
“There are many questions about the future of office space,” he said. After all, commuting time was eliminated, and people have managed to stay productive.
But Castiglione expects it won’t disappear.
“I anticipate there still will be a need for office space,” he said. “People like to be with people.”