Commercial Real Estate

Join us again as our anonymous embedded blogger gives us the straight dope on the commercial market in Downtown Brooklyn and environs.

Mirroring the more active stock and residential markets, the northern BK commercial environment is increasingly vibrant. In a typical sign, bottom fishing is getting more aggressive just as market rate tenants are more numerous. As reported last month, deals in the mid to high twenties and some thirties predominate downtown, with Dumbo a bit less.

Two Trees Management had just sixteen spaces on their availability sheet last December. Now they have thirty-six. Those include spaces offered for sublet, a first for TT. A combination of added inventory, business failures and expanding tenants growing explains this change. Luckily, a mixed story as BK tenants seem to want to be in Dumbo more than elsewhere. The Guttman flagship 68 Jay has little available now, though many vulnerable tenants; TT has a big deal underway; and we have three good tenants seeking space in Dumbo at this writing.

Marketing issue no one has heard of REAP, the most powerful NYCity/State tenant relocation program ever. REAP grants a 12-year, $3,000-per-employee benefit to established companies coming from Manhattan or out of state to renovated commercial properties in the boros. Two Trees, the City’s largest REAP consumer measured by number of leases, has been promoting it for years and SLGreen of 16 Court fame has done so since last fall. The City of New York combined with the larger BK landlords need a concerted and massive push under the direction of the DB Partnership, we strongly believe. Most Manhattan brokers and their tenants have never heard of it, though the program has been around for over 10 years.

Relief to future retailers on our local party street. Both a barber shop at 178 and Heights Books at 120 Smith are just now settling in. Did they pay over 80 bucks a foot like the clothing tenant at Pacific Street? We hear Heights Books paid under 60. That’s a big change. You hear the sound of Montague cracking as well.
Prior Commercial Klutch Posts [Brownstoner]
Photo by lj lindhurst