Retail Rents Triple on Court Street

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Retail rents have tripled on Court Street in the last five years, according to Crain’s, kicked off when Trader’s Joes moving into the old Savings Bank building at the corner of Court and Atlantic.

Rents are now $150 to $180 per square foot, “comparable to many streets in Manhattan,” vs. $35 to $50 a square foot five years ago, according to a CPEX study cited in the story. Private school LePort Schools recently leased 292 Court Street, a 16,000-square-foot building, for $500,000 a year.

The story says rents increased even more when J.Crew took space down the block at 151 Court Street. Except it hasn’t yet — which the story does not mention. Grocer Pacific Green is still in the space, and recently said it plans to shut its new location at 303 Court Street, leading to speculation J.Crew is looking elsewhere.

Rents Go Big-Time in Cobble Hill [Crain’s]

5 Comment

  • is it me or does anyone else see the irony of a cheap food store raising the rents!

  • let the chain invasion begin!

  • Is this a surprise??? There are more people moving in and the people moving in have higher discretionary income. That always = higher rents – Retail tenants need to adjust. Frankly mom & pop are actually better equipped to move into higher margin wares & services that will attract this population (you run a dry cleaner – make it “Green” and charge 20% more, own a butcher shop, carry more grass-fed beef, etc…) But even more importantly negotiate better leases if possible. I f you signed a retail lease in the last 10yrs you had to know that rents were going to increase – so get a LONG-TERM lease with options. Sure maybe the landlord wants a 10% increase for every 5 yr option – so what sign it! You arent personally liable (unless your an idiot), if rents dont increase or you cant support it then you try to renegotiate (with an option in your pocket) but signing a short term lease leaves the renter with no leverage. A good retailer who intends to invest any $ into a new store should demand a 15 year lease with at least one option to start.

    • Seems like the 15 year leases are becoming increasingly rare. Landlords are aware at how much faster the market has been moving in the past few years as opposed to 10 years ago. More common are 5-8 year leases. One of the landlords I know had a store come up for lease renewal after signing a 15 year lease. He is asking a 350% increase and the new lease is good for ONE YEAR! The business he had in his store is moving out.

      I highly doubt he will ever sign a lease for more then 10 years!