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A Few Major Diamond and Jewelry Manufacturers Relocate Away From the Heart of The N.Y.C. Diamond District
I have been noticing a new trend recently, here in the Diamond District of New York City where we are located.
In the past, it has been very important for many diamond wholesalers and manufacturers to be located smack in middle of the N.Y.C. Diamond District since this is where all of the action is.
However, a few of the major players and diamond whoelsalers have begun to relocate adjacent to the Diamond District just outside the main streets of the diamond cutting factories and jewelry retail stores.
I think this has much to do with the fact that today many diamond wholesalers are finding themeselves in a situation where most of their clients are out of State/Country, and almost everything is done on an import/export basis. Since most of their business is conducted via telephone and computer, they don't really need to be in the Heart of the Diamond District, and cannot justify the additional rental premiums. They are relocating to bigger and nicer offices right outside the diamond district for less money.
I know that Louis Glick Diamonds has already set the stage by relocating his diamond and jewelry facilities just outside the diamond district in Rockefeller Center, and is quite happy about it.
I also just met a colleague of mine yesterday from a well known supplier company for Princess cut diamonds. He told me that their company also moved recently from the diamond center to Times Square in N.Y.C.. They were able to rent an entire floor of a beautiful building for less money than they were spending on a substantially smaller space in the heart of the Diamond District.
This all goes back to the principle of market forces and the premium spent on "location, location, location".
I wonder whether this will be a continuing trend for some of the smaller diamond manufacturers and diamond retail stores in the months ahead.
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