The residential and commercial growth in Brooklyn has not gone unnoticed by The Real Estate Board of New York which just launched its first ever Brooklyn Retail Report.
The study will analyze ground floor asking rents in 15 of the borough’s top retail corridors.
“If there’s one thing that I’ve learned during my short time at REBNY, it’s that Brooklyn is hot as hot can be,” said John Banks, who took over as president of REBNY this summer.
Speaking at a press conference to announce the launch of the Brooklyn Retail Report at La Défense Bakery and Bistro in Metrotech Center pointed to the arrivale of large-scale flagship stores, such as Adidas’s 8,700 s/f Fulton Street outlet, as sings of its retail boom.
“It would not surprise me if other large retail establishments continue to come to the borough,” he continued. “The neighborhoods throughout Brooklyn provide a great opportunity to plant a flag and build a retail customer base.”
Banks and his team went on to discuss the overall draw of the lower borough and cited the rapidly shifting demographic pool in many of its neighborhoods as a windfall for retailers.
Stores can pay cheaper prices per square foot while hanging their shingle up in areas that house the same target market of shoppers that Manhattan is known for.
“REBNY’s Brooklyn Retail Report recognizes the emergence of the borough’s real estate market and the ever-growing interest in Brooklyn from a broad spectrum of tenants ranging from national retailers to thriving local merchants,” said Peter Levitan, of Lee & Associates NYC and Chair of REBNY’s Commercial Brokerage Brooklyn Committee.
That spectrum of national retailers and local merchants faired best along Willamsburg’s Bedford Avenue, where the area between Grand Street and North 12th street notched the highest average asking rent at $347 per s/f.
“Brooklyn is booming and the demand for ground floor retail space is playing a major role in its continued, dynamic growth,” said Banks.
“Complementing our existing Manhattan Retail Report, the Brooklyn Retail Report will serve as a guide for better understanding the fast growing retail leasing landscape in the booming borough.”
Robin Abrams of the Lansco Corporation, a prior chair of REBNY’s Retail Leasing Committee and the subcommittee that launched REBNY’s first Manhattan Retail Report, said, “This data-driven asking rent report will be a useful tool for monitoring the continued growth of the borough and will help retailers from all industries make more informed decisions to accommodate their real estate needs.”
“Without reliable information on the Brooklyn retail leasing market, some tenants may be hesitant to move forward with opening new locations and expanding their brands in the borough,” said Mitzi Flexer, of Cushman & Wakefield and a member of REBNY’s Retail Leasing Committee.
The joint effort between REBNY’s Brooklyn and Retail Committees will be published twice per year on the first and third quarters of the year, analyzing the average, median, and range in asking rent for ground floor space in each retail corridor. The corridors analyzed in REBNY’s Brooklyn Retail Report are situated within 10 neighborhoods spanning from Greenpoint in the north to Bay Ridge in the south.
The data for the inaugural Brooklyn Retail Report was provided by REBNY brokers from both the Brooklyn and Retail Committees and comprised of asking rent prices for their current, available ground floor retail listings in the third quarter of 2015.
In order to provide a rich statistical context to evaluate the current market conditions, future iterations of REBNY’s Brooklyn Retail Report will provide up-to-date asking rent data, comparing the current average, median, and range in asking rents for these 16 corridors, to those from six months and 12 months prior.