Industrial Space

August 29, 2007

Boom Times at the Navy Yard

The Navy Yard is in the midst of “a renaissance,” according to an article in today’s Times, as firms plan expansions and clamor for space at the industrial hub. B&H is developing a multistory building on the water, while Steiner Studios is revamping a 289,000-square-foot building; both projects are going to cost around $50 million. The revitalization of the industrial park comes as the Bloomberg administration has already pumped more than $30 million into upgrading it, with the city planning to invest another $180 million in structural repairs over the next three years. That investment has been paying off too: Net cash flow at the Navy Yard Development Corporation has gone from $700,000 to $5,500,000 since 2001. Some say the Navy Yard’s success is mostly linked to the diminishing supply of industrial space elsewhere in the city. “Every five years, the city is losing approximately 15 percent of its industrial space, because it is being converted into residences, offices, retail,” said John G. J. Ritter, an executive vice president of Sholom & Zuckerbrot, a commercial real estate brokerage. In light of the Navy Yard’s changing fortunes, does it make sense that the city continues to charge forward with plans to transform other industrial-use zones—Gowanus springs immediately to mind—into residential areas?
Brooklyn Navy Yard Once Again Is Booming [NY Times]
Photo from brooklynnavyyard.org