Dumbo Commercial Real Estate Update (June 2013)

Dish Restaurant

It’s been a while since we had an update on commercial propertyies in Dumbo. We received the below June 2013 update from Chris Havens, Director of Commercial Property at aptsandlofts.com. Essentially, the office vacancy in Dumbo is *still* very limited.

We’ve just seen three leases go out for spaces over 3000 RSF in and around Jay Street, bringing the public office availability down to 1.8%. This includes space in Green-Desk, which occupies over 50,000 RSF of space and always has several spots turning over.

While two fulls floors in Dumbo are in play, I do not count them here as there are more than enough expanding Dumbo tenants right here to take them and actively trying to! Inside baseball these days.

Tenants under 2000 RSF are stuck. We are all swamped with calls we can’t service. I had five possibles for my recent 5,000 RSF sublet, and a solid aggressive Dumbo company with multi-millions in revenue and a very healthy cash position took it! Local guys are favored. Landlords have raised asking rents this year more than once in response. We’ll see $40-plus like the small corners at 10 Jay cost spread to the best buildings this year, IMO.

Retail is even tighter, with to my knowledge only the Bubby’s space and the basement at 37 Bridge/Kirkman lofts are on offer. Aside from the turnover spaces at 145 Front shops, what else is there? Restaurant/retail news: Governor space at 1 Main taken; 1 Old Fulton/Pete’s Downtown in a deal; RICE space being built out for Italian/Med place.

Development activity includes 185 Front 180,000 SF new con/reno job on the recently sold Watchtower site; 35-51 Jay Street/ Ben Forman building sold and in the project planning stage; 233 Water Street sold; 185 Plymouth Street under condo renovation; townhouses coming to NE corner of Pearl and Water; Empire Stores designation expected shortly; Tobacco Warehouse – St. Ann’s Warehouse/public space proceeding: Dock Street rental/retail/middle school preparing foundation work.

A significant new amenity was just added to DUMBO, the FITNESS GURU at 215 Water. A 7500 SF health and workout facility, the GURU is a result of a huge investment by the tenant and a flexible approach by the landlord. May they do very well.

{Dumbo Brooklyn Commercial Report (March 2012), 12Mar2012}
{Dumbo Brooklyn Retail Report (Jan 2012), 13Jan2012}
{Dumbo Retail Report (Dec 2011), 16Dec2011}
{Dumbo Commercial Real Estate Update (Nov 2011), 22Nov2011}

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