The Real Deal | June 1, 2016
By Adam Pincus
The Brooklyn neighborhoods outside of the borough’s Downtown business hub are having their own office party.
Many of those neighborhoods are seeing a quiet but significant uptick in small office properties available for rent, as Brooklyn continues to reap the benefits of higher rental rates, new ground-up construction and more conversions.
Local landlords in Marine Park, East Williamsburg and other
neighborhoods have watched in anticipation as firms such as Kushner Companies and Midtown Equities acquire and renovate buildings in Dumbo and lease them at rents ranging from $50 per square foot into the $70s per foot.
Now, these smaller owners are joining the Brooklyn land rush in larger droves. Such landlords added an astounding 110 properties, encompassing more than 1.2 million square feet to the leasing market outside of Downtown Brooklyn over the past year, an analysis by The Real Deal of CoStar Group data showed. (Those properties are either existing, under construction or under renovation.)
Many brokers and owners believe Brooklyn — once the back-office stepchild to Manhattan — has started to mature into its own primary market, driven by the borough’s exploding residential sector.
“Residential growth makes Brooklyn office locations convenient for a growing number of employees,” said Justin Fitzsimmons, an analyst at the New York brokerage GFI Realty Services. “While much of the [redevelopment] activity has been concentrated in North Brooklyn areas, including the Brooklyn Tech Triangle, Williamsburg and Bushwick, we are seeing the same trends, on a smaller scale, in Red Hook, Gowanus and other neighborhoods across the borough.”
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