Commercial Klutch: May Edition
Here’s the latest scoop from our masked commercial correspondent… The only r.e. market in northern Brooklyn not yet turning upwards is the Court/Montague office submarket. Residential has abundant evidence: renovated townhouses in shortage; unrenovated house prices up sharply; rentals flying; “dead” sites restarting all over town. DUMBO landlords leased over 150 spaces in the last…
Here’s the latest scoop from our masked commercial correspondent… The only r.e. market in northern Brooklyn not yet turning upwards is the Court/Montague office submarket. Residential has abundant evidence: renovated townhouses in shortage; unrenovated house prices up sharply; rentals flying; “dead” sites restarting all over town. DUMBO landlords leased over 150 spaces in the last 15 months. MetroTech on track to do over 500,000 sf this year and biggest single Brooklyn commercial lease (400,000) in almost ten years nearly complete at 470 Vanderbilt (pictured). Retail space, unless overpriced, is re-leasing quickly. All these deals but a handful are in the twenties per RSF, the area sweet spot.
Building and land buyers are competing again. Yet another contract is out on 350 Livingston parcel, to best buyer yet. Very little ground up or renovation product available. Those that are have multiple bidders. Quality Manhattan restaurants dying to get in, can’t find space. More tenants in market than built resto space, and a willingness to scratch build restos is back again.
Hoping boom-let will carry Court and Montague upwards too! Visitors and deals up somewhat, yet industries the streets serve are stagnant. Owners must adapt to tenants in the market, not the other way around. Look to the local waterfront buildings my owner friends, visit and learn.
How long the upswing will last, no one knows. This boom-let fueled by tons of cash on sidelines, multi-year development standstill and low, low % rates. We predict growth will last through re-election of the President and into 2013. After that, who knows.
I don’t fully agree with Blo head about flatbush/tillary but again, not the best place to take a bank right now….
i thought 350 would stay office, but he may be right, great development site
CityPoint isn’t lagging, they have multiple tenants competing.
Flatbush/Tillary are hotel sites, hardest to finance, plus corner is GROSS! parking lot – again, hotels very hard to finance without huge cash, so many on hold unless developer has big partners
350 is a tear down….. too bad, i wish it would go small office, area needs it bad
In addition, what other turnover is happening on Fulton? And do we know who’s going into the Phase 1 City Point?
Masked, is 350 Livingston going office or residential?
Also, I don’t suppose the parking lot next to 110 (the one time Cambria Suites development lot) has piqued any interest, has it?
If the above is true, why CityPoint lagging, especially since the main tower was supposed to be commercial and residential rental, which are both strong. Are the dead sites all around Flatbush/Tillary changing their status from empty pits/bare land to actual buildings?