Gowanus Primed for More Growth, Study Says November 28, 2016

Wall Street Journal | November 6, 2016

Rents and real-estate investments are going up in Brooklyn’s Gowanus neighborhood as New York City considers rezoning the area for more residential development, a new study shows.

Speculative real-estate investments increased 47% in 2015 from 2014, and the average price per buildable square foot rose to $262 from $223 in those same 12 months, according to the study by GFI Realty Services LLC.

At the end of 2015, the monthly median rent for Gowanus was just under $3,000, a 13% increase from 2014, according study, which forecasts another spike in the median rent at the end of the year because of the opening of a 430-unit luxury development at 365 Bond St.

The study found that the neighborhood has seen less development because of the Gowanus Canal, a polluted waterway that has been designated Superfund site by the U.S. government, as well as the area’s industrial zoning.

“The neighborhood hasn’t popped yet,” said Michael Weiser, GFI’s president. “But it’s not a question of if it will happen, it’s a matter of when.”

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