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Brooklyn Office Market Has Big Fourth Quarter
Brooklyn office leasing activity saw a 91% quarterly increase with 404,000 square feet in the fourth quarter of 2022, a tally that was up 30% from the five-year quarterly average, CBRE reported. The leasing boost was primarily driven by large deals downtown.
This brings year-to-date leasing to 987,000 square feet, 2% higher than last year’s year-end total. Limited space additions and increased leasing saw positive absorption continue to increase in Q4, totaling 425,000 square feet.
Subsequently, availability dropped 90 basis points quarter-over-quarter to 20.7%. The sublease availability rate fell 50 bps from the prior quarter to 1.2%.
Average asking rent remained flat from the previous quarter, at $48.91 per sq. ft., and is up 5% from the prior year.
DUMBO had the largest deal of the quarter with Boston Consulting Group’s 67,000-square-foot sublease at 55 Water St. The submarket’s quarterly leasing total was 63% above its five-year average.
- ◦Lease
