Brooklyn Brewery Staying Put Courtesy of Weak Market
Before the real estate market started to weaken back in 2008, Brooklyn Brewery had been desperately (and unsuccessfully) searching for a new place to set up shop in Brooklyn; after two decades on North 11th Street in Williamsburg, commercial rents had crept up to $30 a year, more than three times what the brewery was…
Before the real estate market started to weaken back in 2008, Brooklyn Brewery had been desperately (and unsuccessfully) searching for a new place to set up shop in Brooklyn; after two decades on North 11th Street in Williamsburg, commercial rents had crept up to $30 a year, more than three times what the brewery was paying and well beyond the reach for most manufacturing businesses. Now, however, thanks to the weakening market which has reduced the competition from other uses like hotels, bowling alleys and upscale markets, and a $800,000 grant from the state, Brooklyn Brewery has managed to negotiate a new lease that will let the beer maker stay put for another five years. When the recession hit in, like, August or September last year, all of a sudden the landlords here in Williamsburg were looking much more favorably on us as a long-term tenant, Brooklyn Brewery’s founder Steve Hindy told The New York Times.
Soft Real Estate Market Is a Key Ingredient at Brooklyn Brewery [NY Times]
Photo by wallyg
I know I’m getting in late on this but I have no idea w/ budget cuts being the way they are WHY THE HELL WOULD NYS pay $800,000 so a fake brewery that can’t make a profit and employs just a few people stay open for 5 years. How about unprofitable businesses go under and stop being a drain to taxpayers in the form of ridiculous bailouts.
Of course, Brooklyn Brewery continues to want it both ways: while bitching about high rent and the loss of affordable manufacturing jobs, they have supported Atlantic Yards and city attempts to get rid of American Stevedoring in Red Hook. There’s a whole swath of Brooklyn that won’t serve their products.
Very good news for Brooklyn that this has been worked out.
Ah ha ha! Karma on greedy ass landlords. Great news! God Bless Brooklyn Brewery!
“I find it quite surprising that Brooklyn Brewery hasn’t built enough capital by now to be their own landlords”
The true definition of commercial success. Thanks for the cliffnote @ 9:35, tybur6. For a whole minute, veins were popping out of my head as I tried to figure out the inconsistency.
***Bill Thompson for Mayor (TOMORROW!!!)***
great news. the neighborhood would not be the same without them!
The article states that BB has renewed the lease for FIFTEEN years, not five.
“When the market cooled, Mr. Hindy signed new 15-year leases for the brewery and an adjacent building, at an average cost of about $15 a square foot — significantly higher than he had been paying but only about half of what landlords sought at the peak of the boom — he said.”
Better having a brewery there then some beer themed condo building.
excellent place to day drink. glad it’s staying put.
(and yes, by the end of my comment, my surprise was downgraded from “quite” to “a bit”)