Hi,
Having lived 2 blocks from the shop, I can attest to the lack of space and outragious rents but NYC is NYC, ya know. It's hard for many people who are from outside the city to understand what it means to be able to say "Made In NYC" unless they have also lived here and if they were born and raised here like me, they wouldn't have it any other way!
It's also important to remember that NYC means th FIVE boroughs, not just Manhattan. I think plenty of space can be had in any of the other 4 for considerably less $$$
BTW: Queens isn't perfect but it's a lot nicer than many other places I've been to. Has the poster who said it was just a smelly tunnel ever been there?