In January, no one was happy to learn about the MTA’s possible plan to completely close the L train tunnel in 2018 for much-needed repairs. But with the initial panic subsiding, Brooklynites are now entering the second phase of transit grief: serious real estate contemplation.
To further fuel the speculations, The Real Deal checked-in with a number of real estate experts this week to get their take on how the tunnel shutdown could impact renters, developers, and businesses in the ‘Burg.
Here are three of the most interesting predictions.
Residential rents will fall 15 percent
Mirador Real Estate broker Andrew Rose predicted a steep decrease in rental prices as landlords try to entice renters to stay in the transit-starved nabe. That’s right. Williamsburg tenants will get to see their landlords reduce their rent in an effort to keep them from fleeing to other neighborhoods.
Rental developers with bad timing will lose their shirts
New developments in Williamsburg could be the hardest hit on the rental side, with some developers potentially facing foreclosure if they can’t get a full house. One luxury rental building has already said it will offer a free shuttle service to appease its residents. Nearly everyone agreed that sales will see a less dramatic dip.
Small retailers will drown like steerage passengers on the Titanic
You read that right. CPEX Real Estate co-founder Tim King drew an analogy between Williamsburg’s mom-and-pop shops that have low margins and depend on foot traffic and the tragic victims of the world’s most infamous maritime accident. The shutdown could “have a significant, catastrophic impact” on smaller businesses along Bedford Avenue that can’t financially weather the closure, he said. But there’s hope: Landlords could grant a temporary rent reduction.
Yes, the MTA Might Close L Train Tunnel for Years — But Wait, There’s Hope
L Train Won’t Shut Down Until 2018, Disruptions Could Last Seven Years
‘Burg Luxury Tower Residents Can Skip L Train Shutdown Woes With Private Shuttle