New York & Tri-State CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
BK Retail Saw Steady Demand in H2 2023
Brooklyn’s Retail shows strong competition in prime residential areas and emerging shopping spots like City Point and Industry City in H2 2023, according to REBNY’s Report. While some sectors scaled back leasing, overall demand remained robust.
Average asking rents in 12 of 17 corridors were below pre-pandemic levels, dropping from -11% to -59%, with an average decline of 21%. Yet, large transactions in competitive neighborhoods led to rising rents and strong performance. Year-over-year, average asking rents grew in 13 of 15 corridors. Williamsburg and residential areas like Park Slope saw high competition, while Greenpoint and Gowanus offered more space at lower rents.
Destination experiences like Industry City continued to attract tenants, with expansions from Brooklyn Made Store and Japan Village. Luxury brands thrived in Williamsburg, and food, gyms, and health retailers were active in established neighborhoods. Challenges like staff shortages and permit delays are hindering business setup, particularly in lower-traffic areas.
