Commercial Klutch: September Edition

As Class B & C office space is steadily absorbed in Downtown Brooklyn’s center, owners are renovating peripheral buildings, including 350 Livingston shown above, 325 Gold Street and 147 Prince Street. While each building has much space available, leasing velocity is lifting, so the spaces will be taken during 2011 because Court & Montague options for deals less than $30 a foot are shrinking. While a recent 16 Court renewal is lease out at $37, reflecting a high floor with moving issues, generally tenants want to pay in the $20s, the area’s sweet spot. Speaking of Jacksons, DUMBO keeps rocking, at least a lease a week, including a few spaces above 3000 square feet, which are rare lately.

While tons of MetroTech campus space is available, the long-awaiting DoITT lease @ 2 Metro has ignited visitors. Numbers are still secret. With HRA being kept off 4 MetroTech by everyone concerned with the area (they are going to 470 Vanderbilt it appears), things are looking up. Still, tale of two cities Class A is very soft (but for 335 Adams), reflecting the lower Manhattan mess. There is said to be as much space VACANT south of 14th Street as there is all built space in DTB and DUMBO!

As everyone seems to know, many tenants are competing (!!) for the 225 Atlantic space. Kudos to 32 Court Street for the Monroe College representing while they await a serious lease. Good for area, building and education, our largest neighborhood (# of customers) business after clothing. Hopefully The Final Martinelli’s space @ State & Court news – corner owner just got real, taking under $90 for his space. Still a lot of money – hopefully TIO PIO will kill it on evenings and weekends.

Earlier this year we called the bottom on B & C leasing. MetroTech will continue to struggle, but B & C prices firmed many months ago and special cases will pop up. Generally though dollars will be flat. This bottom is consistent with stronger rental market, slow decline in condo availability and shortage of renovated houses for sale.