Commercial Klutch: February Edition
Another submission from our masked commercial correspondent…Continuing to be frustrated in their attempt to lease large blocks of space at their MetroTech 3 & 4 properties, we can only hope JP Morgan Chase backfills with their own people some day. Meanwhile, next door at MetroTech 2, the NYC Dept. of Information Technology is taking 85,000…
Another submission from our masked commercial correspondent…Continuing to be frustrated in their attempt to lease large blocks of space at their MetroTech 3 & 4 properties, we can only hope JP Morgan Chase backfills with their own people some day. Meanwhile, next door at MetroTech 2, the NYC Dept. of Information Technology is taking 85,000 RSF, very good news for Forest City Ratner and the biggest lease to date in BK this year. DoIT had been considering MetroTech for nearly two years as part of NYC’s wise effort to save money by taking space in these down market times. Deal rates under wraps but bets are on near bubkes numbers…DUMBO continues to be ‘available’, with over seventy spaces on the market by the three large commercial owners. While larger spaces are dormant, small spaces are still rocking, especially in Two Trees buildings. Effective rents in the low twenties…We hear the State of New York, due to its financial crisis, is threatening to leave long occupied and multi-renewed spaces at lease expiration if landlords don’t cut rents right now.
Prior Commercial Klutch Posts [Brownstoner]
“commercial in Bk is not falling apart”
Yeah it is. You haven’t experienced anything like what lies ahead.
***Bid half off peak comps***
Ratner builds craptacular space, then is bailed out by his government friends, who move agency offices to Ratner buildings that are unrentable to private tenants.
“DoIT had been considering MetroTech for nearly two years as part of NYC’s wise effort to save money by taking space in these down market times.”
SIAC is in this building, so it has enormous bandwidth, which certainly was part of the draw for DoIT.
BStone Half, actually downtown BK is at 8% vacancy rate, lower than almost everywhere else in US.
Rents in all but MetroTech have stopped dropping and reached equilibrium, esp. in dumbo and court/montague. Only MetroTech has much space available actually…
Small tenants, the bread and butter of BK, keep coming.
While it is still a tenants market, and that is good i agree, commercial in Bk is not falling apart.
“we can only hope JP Morgan Chase backfills with their own people some day”
Backfill! ROTFLMMFAO!
***Bid half off peak comps***
Yes, as I suspected, commercial is falling apart. The only thing to celebrate is a bottom-feeding city agency that found a deal (Undisclosed rate must be low, otherwise celebrated.). Until private companies start crowding these spaces, commercial will be in the tank for some time. Recovery? Ha! I am delighted. It’s an excellent time for entrepreneurship. It is time to turn the tables between landlords and tenants, residential and commercial. Yippie!
***Bid half off peak comps***