Commercial Real Estate

You’d think the Trader Joe’s opening was the Coming of the Lord the way the crowds keep coming. The 100th guy in line the first day told me he got a free shopping bag. Wow…99 cents inside. We do love what they do, and wish them well. Gotta be the loveliest grocery store in Kings County. Meanwhile, down the street in a different location Urban Outfitters is struggling. Why isn’t anyone buying?

Good news for office tenants rents are dropping. Call volume is way down all over, mirroring what’s happening in residential. 16 Court Street cut prices for the third time this year and is now offering a couple spaces outside the pre-built program for under $30 psf (ouch) if a decent tenant takes them as-is. Morgan Stanley is putting two floors at One Pierrepont Plaza on the market for sublet shortly at competitive prices, we hear. That being said, Brooklyn still has a shot because of REAP, the City/State tax abatement program that grants heavy tax credits for tenants moving employees from the small island across the water to eligible properties on the big island. MetroTech, One Pierrepont, 16 Court, 186 Joralemon, Two Trees properties and others are eligible, because the program targets major renovations and new construction, to encourage same. Click through for more commercial news.

The party doesn’t stop in DUMBO. The new shared work space Green Desk continues to grow at 155 Water, serving folks both within and relocating to Brooklyn. Even Green Desk, though, has cut its prices, reducing single desk space from $450 to $375 a month. Working Today, the people with the cool Freelancers Union ads on the subway, are taking over 6,000 sf in 20 Jay Street at $20 a foot, we hear. Small tenants keep calling for space, not enough….When’s Sunset Park going to be ready? It is? OK.

CUNY’s still flogging a lease to death for 2 MetroTech. Hope the government revenue fall doesn’t kill it #0151;space is needed badly by the University.
Commercial Klutch: September Edition [Brownstoner]
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Commercial Klutch: July Edition [Brownstoner]