New York & Tri-State + Outer + Office | January 13, 2023

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.

Connect

Inside The Story

CBRE New York City

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).