Commercial Klutch: November Edition
Another report from the trenches courtesy of our anonymous commercial real estate correspondent… This year’s biggest pure market disaster is arguably retail rents, off from thirty to fifty percent. Prime space in Dumbo once worth nearly $60 a foot goes for $37. Smith Street from$80-plus down to $55 – or less. Back to reality is…
Another report from the trenches courtesy of our anonymous commercial real estate correspondent…
This year’s biggest pure market disaster is arguably retail rents, off from thirty to fifty percent. Prime space in Dumbo once worth nearly $60 a foot goes for $37.
Smith Street from$80-plus down to $55 – or less. Back to reality is good news for tenants. Anybody with the chutzpah to open any type of store today deserves a break!
Liberal bank lending, which fueled the boom, now limits condo sales with absurdly tight underwriting standards. Old story – banks lend too much then they lend too little. When will they get it right? To be fair, the investment bankers, rating agencies and attorneys together killed the secondary market banks early on. Still, does water boarding borrowers help anyone?
Hard for tenants to resist when four large projects (Tillary, Myrtle, DeKalb, Lawrence) open at the same time. Great for DoBro, great for tenants, goodbye developer equity. Somehow living in high-rise full-service new construction doesn’t seem like the Brooklyn thing to do…. Could be fun though.
Area office rents, after dropping thirty percent, have stabilized. DoBro vacancy rate according to the four monster commercial brokerages that survey us, is lower than Manhattan. Take that small island.
Flattery Vs. Rambo….. Some have called the area bounded by Tillary, Jay, Sands and Prince Street RAMBO (right After the Manhattan Bridge overpass) when owners there tried to call it Dumbo. Broker Paul Murphy coined FLATTERY. I like that better. Let’s go with it. What do you think?
Prior Commercial Klutch Posts [Brownstoner]
Denton, very interesting. MOthball it? where you hear that?
Flattery is singularly inappropriate for that area, rambo better… but i like it, funny and catchy. Area needs something!
DoBro has been used many times on Brownstoner, where youse guyz been…. i prefer downtown brooklyn
dumbo was considered dumb for yeara, but worked.. name came from artists ironically naming area in reaction to 70’s boom in names like boerum hill and cobble hill, i am told authoritatively but it stuck, ironic or not dude
As a born and bred Brooklynite I have to really shake my head at these stupid, idiotic names people are giving our neighborhoods. STOP!!!!! Most of the jackasses who are trying to rename neighborhoods or worse yet create a neighborhood within an existing one aren’t even from New York, much less Brooklyn. DoBro? DoBro?!!! DUDE!!! Are you kidding me??!!! Go back to Ohio…..
-SM
Don’t forget SOSLO…South Slope.
I heard JPM is having a hard time subbing the BS space at 1 Metro, and it’s a lot of space. Heard they’re gonna mothball it if the don’t rent it soon. first time since the 70s iirc. Of course they still have to pay the rent.
You go, joe.
I think there isn’t anything there and it doesn’t need or deserve a nickname.
“Unless Martha Stewart declares it official, since she has now discovered Brooklyn.”
I am kinda of sick of people “Discovering Brooklyn”. Oddly enough I think it was a young man from Queens who said, ‘Don’t call it a come back, we been here for years.’
translation:
Sorry bros, I don’t have time for complete sentences, I’m too busy living the dream in COM-RE. But real quick while I get into my Miata in its private spot here between Dumbo and Ashland place (DUMBASS): Um, investment banks are so evil, dude. Have you brownstoner readers noticed all this new construction? Shit! OK, back to my sweet life. For more info, make an appointment with my assistant at my office Down Behind Atlantic and Gold st. (D-BAG)