Reporters are asking us how much rents have dropped in Downtown Brooklyn market. While it is hard to say, as there's so much variation among buildings and their owners, generally we say 20% to 30% off peak of Fall 2007. What would have been $40 is $32, $35 is $28 and $29 is $23. Good for tenants...
44 Court (above) undergoing massive exterior job (complete with typo'd signage), continuing JPDay program of actually spending money on their buildings. Good for Downtown, too. Still, the types of tenants coming to our market get better and better. Uniworld – a top urban marketing ad firm - to MetroTech; Spike Lee’s ad agency to DUMBO; Van Valkenburg Associates to 16 Court Street. Serious former Manhattan tenants honor us by choosing our streets. And BK creatives now consider downtown Brooklyn when shopping instead of just DUMBO, though it's hard for them to find good spaces they like. Quite expensive to do the loft look in Court/Montague properties, compared to standard dropped-ceiling build.
Retail rents are on the way down as well. Former $138 per sf asking next to Trader Joe’s now $105. Still too high? On the other hand, to be next to Joe’s is worth a lot. Who gets more traffic after 6pm? Five Guys Burger turned down Busy Chef space due to price and issues with occupancy of a residential building.
What are 29 and 35 Jay Street waiting for? Residential zoning, plans, decisions, family agreement...Opposite approach – Two Trees carving out new offices from elevator shafts, corners, wherever they can do so to maximize value. One reason they have more listings than last couple years, we were told.
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