Another missive from our masked commercial correspondent… 20 Jay Street, one of the best Brooklyn office properties, ‘grew’ a full office floor last year when the 9th floor was converted from storage space. Corners taken before it opened. View my favorite on the waterfront. Ask why. Ink still went on many typical 1,500-s.f. unit deals in 20 Jay, running from low floor $22 per foot up to high floor view $26. Concessions way off from 2009, yet asking or so-called ‘face’ rents generally steady for three or four years. Not up in last boom or down in recent bust. Interesting way to go – creative.

More chain retail tenants in market than large spaces. Back to landlord’s choice. Amount, quality of space tight plus many difficult owners. Overpriced rehabs and huge soft costs – why it takes so long for retail to evolve.

Monster-size Staples coming east side of Jay Street, after lengthy parlay.

Among worst roadblocks to retail: after a multi-year struggle with Transit Authority, H&M site (over Hoyt 2/3) in demo phase as reported by Brownstoner. Years ago, MTA tortured developer of 200 Schermerhorn housing 50/30/20 building that sites over A/C/G at Hoyt. Gov’t claimed that waterboarding project would develop a more streamlined process and procedure. Wuh happened? A tax on all of us.

B & C office space in seismic shift. As creative tenants accept downtown BK as an option, big blocks of space for heavy client-centric users like education and social services shrinking. Atlantic Avenue, Gowanus benefiting. Activity on fringe of prime DTB strong, with action on Gold, Prince, Atlantic Center area. Almost nothing large left for client traffic tenants but 470 Vanderbilt and north Gowanus product. Livingston properties either for sale or under housing conversion microscope. 101 and 75 Clinton, 166 Montague and 505 Fulton all going or gone resi, taking down 300,000 RSF former B and C space. Like taking biggest prewar – 16 Court – off the market.
Prior Commercial Klutch Posts [Brownstoner]