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REBNY's Brooklyn Retail Report: Pulse in Asking Rents Support Strength of Market in Winter 2016
April 7, 2016
-- Bedford Avenue maintains the highest average asking rent; Montague Street sees the largest percentage increase in average asking rent for ground floor retail spaces in the borough --
The Real Estate Board of New York (REBNY) today released its Brooklyn Retail Report for the First Quarter / Winter 2016 at the Brooklyn Real Estate Conference in Williamsburg. The second study, comparing data from REBNY’s inaugural, Third Quarter / Summer 2015 report, showed slight increases in average asking rents for ground floor retail spaces in 14 out of the 15 major retail corridors analyzed throughout the borough.
“The modest rise in asking rents from last summer to this winter speaks to the sustained strengthening of the retail market in Brooklyn,” said John H. Banks, III, REBNY President. “The retail corridors examined continue to experience heightened activity and we look forward to informing the retail community about the growth in Brooklyn as we continue to track the market activity in these corridors.”
Bedford Avenue, between Grand Avenue and North 12th Street, maintained the highest average asking rent for ground floor retail space in Brooklyn rising 3.9 percent to $361 per square foot from Summer 2015 to Winter 2016. The largest price bump in North Brooklyn was on North 6th Street, between Driggs Avenue and Kent Avenue, where a few of the new availabilities pushed the average asking rent up 4.8 percent to $218 per square foot for ground floor space in Winter 2016. All other North Brooklyn average asking rents – aside from Grand Street, between Havemeyer Street and Kent Avenue, which experienced negligible decline – saw small increases in average asking rents.
The rise of prices along Montague Street, between Hicks Street and Cadman Plaza, in Brooklyn Heights demonstrated how average asking rents can change dramatically in a corridor when there is little availability. The average asking rent jumped over 25 percent to $188 per square foot during Winter 2016, while the sample size grew by only one more availability from Summer 2016.
REBNY’s advisory group agreed that while this change was the result of a small sample size, the uptick was representative of this corridor’s value and not indicative of a major market shift. Short term fluctuations in asking prices along these corridors are attributable to Brooklyn’s diverse mix of landlord profiles and spaces coming on or off the market, among other factors.
The advisory group also expressed their bullishness on the retail market as more tenants and sources of investment stake their claim in Kings County.
Other highlights of the First Quarter / Winter 2016 Brooklyn Retail Report:
- Cobble Hill asking rents on both Court and Smith Streets, between Atlantic Avenue and Carroll Street, increased from Summer 2015 to Winter 2016 with the average asking rent increasing 7.8 percent to $175 per square foot on Court Street, and 15.1 percent to $139 per square foot on Smith Street.
- Further to the south, both corridors in Park Slope also reported increases. The average asking rent on 7th Avenue, between Union Street and 9th Street, reached $96 per square foot, up 11.4 percent from the previous report, while the average asking rent on 5th Avenue, also between Union Street and 9th Street, increased almost five percent $85 per square foot.
- In Bay Ridge, the average asking rent on 86th Street, between 4th Avenue and Fort Hamilton Parkway, rose 10.6 percent to $85 per square foot.
The Brooklyn Retail Report is published twice per year in the first quarter / winter and third quarter / summer of each year, analyzing the average, median, and range in asking rent for ground floor space in each retail corridor.
Data for the Brooklyn Retail Report was provided by REBNY brokers from both the Brooklyn and Retail Committees, and comprised of asking rent prices for their current, available ground floor retail listings. Among those who assisted in preparing the report are: Robin Abrams of the Lansco Corporation, a prior Chair of REBNY’s Retail Leasing Committee and the subcommittee that launched REBNY’s first Manhattan Retail Report; Diana Boutross of Cushman & Wakefield and member of REBNY’s Commercial Brokerage Brooklyn Committee; Mitzi Flexer of Cushman & Wakefield and a member of REBNY’s Retail Leasing Committee; Peter Levitan of Lee & Associates NYC and Chair of REBNY’s Commercial Brokerage Brooklyn Committee; and Nicole Liebman of Cushman & Wakefield and member of REBNY’s Commercial Brokerage Brooklyn Committee.