We received the following February 2015 update from Chris Havens, Vice President of Commercial Property at aptsandlofts.com.
The end of an era of views, brick and timber high floors and a great Brooklyn start up building! 10 Jay Street turns off their electric service April 1st and starts the conversion to residential use. 300,000 rsf of commercial leaves the market, hard on the heels of 1mm sf of prewar and other buildings in downtown Brooklyn.
Everyone knows about the Two Trees pricing move up, yet less visible are the new, higher asks east of the Manhattan Bridge. After forty years of plentiful ‘extra space storage’, I believe there will never again be enough commercial space for those who want to be here. This of course is the case almost everywhere in Brooklyn, which is now in real estate warp drive.
The Dumbo Heights development has two huge tenants in hand, with one taking their space over in several weeks, and is about to announce retail deals. Multiple tenants continue to negotiate, and the super high end (daily cleaning, electric included) smaller spaces are now on the market.
Same story at the Empire Stores, Where some fancy retail is coming for sure. Large office deals in Brooklyn take time, as they do anywhere, and there is much to look forward to at both of these properties.
Brooklyn Bridge Park can now glimpse the finish line, as the two residential projects build up (Pierhouse and One John Street). A battle is on about the third (at Pier 6). One of the most successful parks in New York City, the enormous visitor traffic is boosting DUMBO retail. 60 Water, Empire Stores and numerous spots on Old Fulton are coming on line. The Park is of inestimable value to DUMBO. Please support it, as many of you do. It’s made all of us richer in many ways!
The Watchtower Bible and Tract Society is talking and/or fending off numerous well-heeled investors about their remaining lands. It remains to be seen when they let go on of the Front Street pieces (and the 85 Jay Street lot).
With many office rent asks in the high forties, some leases will hit fifty later this year in the classic, veteran Dumbo buildings while new large leases land in the newer product.
Previously:
{Spring 2014 Dumbo Commercial Real Estate Update, 16Apr2014}
{Dumbo Commercial Real Estate Update (December 2013), 16Dec2013}
{Dumbo Commercial Real Estate Update (June 2013), 02Jul2013}
{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}