We received the below update from Chris Havens, Chief Executive at Creative Real Estate Group, a local commercial real estate business on the Dumbo Retail Report for January 2012:
“We now track retail activity closely, as you can see from the attached report, the first of many to come. Note that Superfine is on the cover, my favorite watering hole in all of BKLYN. Without Superfine, Dumbo would not be Dumbo.”
One hundred and twenty-nine storefronts currently utilized as retail, restaurant, office and studio space comprise the area market, totaling 316,474 SF.
Four distinct mini sub-markets outline what is now called DUMBO: Fulton Landing/Old Fulton Street; Between the Bridges/Central DUMBO; DUMBO east of the Manhattan Bridge (John to York, Jay to Pearl); Vinegar Hill (east of Jay to Hudson Avenue/Navy Yard overlook).
Spaces range from 50SF to 6000SF, which most availability above 3000SF. Demand for stores under 1000 sf exceeds supply by a wide margin. Yet larger sizes languish. Bars, food tenants, restaurants home goods and apparel comprise much of the demand. DUMBO nightlife is growing, with the addition of Rebar, the expansion of 68 Jay bar and increased tourist traffic. However, the area doesn’t yet compare to Smith Street or 5th Avenue in Brooklyn. That being said, the area hosts a soon to be famous pizza block bounded by Old Fulton, Front, Dock and Water boasting Ignazio’s, Grimaldi and soon to be Julianna’s.
The area-wide vacancy rate is 11.5 %.
Eleven storefronts and retail sites are currently offered, with nine sized 2000SF and above. All but one of these large spaces are on Fulton Street or in Vinegar Hill, not the center of DUMBO. The one large space Between the Bridges, 6600SF at 81 Front, is now Leases Out after receiving multiple offers last fall. Small Space – at the time of this writing, only mini-spaces at the Shops at 145 Front are available and an office-oriented space on Bridge.
Asking Rents/Taking Rents
Asking rents range from $40 to $75 per foot, based on size and location. The high end of the range are spaces under 500 SF.
Recent taking rents include last year’s relocation of P.S. Books from 147 Front Street to 2138SF at 76 Front for $37 a foot in late 2010. One Girl Cookies took 1457SF at One Main for $42 a foot in October 2011. The 1250 SF space at 57 Front was leased in December 2011 to a spa for $40 a foot.
Spaces that may become available in 2012 under 2000SF on prime streets, which are Front, Washington and Jay, would be worth a minimum of $60 a foot.
The Brooklyn retail market has accelerated this year, trending upward in both price and velocity.