Leasing in Brooklyn's retail sector has steered a steady course during the last six months. Brokers noted robust demand for second generation space, as retailers remain eager to capitalize on the reduced buildout costs associated with fully-built space. Increased activity among national retailers and some direct-to-consumer brands has heightened competition in select areas. Some locations are even receiving multiple bids.
Despite the growing demand, asking rents are still adjusting in many corridors. Pricing discovery is elusive. In a few locations, the depletion of second-generation space has left the corridor with more higherpriced spaces in newer buildings. In other corridors, the addition of fully-built space has pushed rents lower. If leasing momentum is maintained, rents could stabilize in the second half of 2021.