MNS, the Brooklyn real estate firm published their January 2015 Brooklyn Rental Market Report earlier this week (along with their Manhattan Rental Market Report). Andrew Barrocas, CEO of MNS, notes that average rents throughout Brooklyn increased by 2.64% from $2,598 in January 2014 to $2,666 in January 2015.
The market has picked up since December 2014. The largest percentage increases in rent prices were seen in Studio units in Cobble Hill, Clinton Hill and DUMBO. The largest percentage drop was seen in Studio units in Greenpoint.
Some other highlights of the report include the following:
Rent Prices in Brooklyn decreased by approximately 0.02%- from $2,666.88 in December 2014 to $2,666.26 in January 2015
Average rents throughout Brooklyn increased by 2.64% from $2,598 in January 2014
Listing Inventory increased slightly by 5.34% from 3,148 listings units in December 2014 to 3,316 listings Units in January 2015
The largest percentage increases in rent prices since December 2014*
Studios in Cobble Hill (up 11.3%), Clinton Hill (up 10.19%) and DUMBO (up 9.72%)
The largest percentage decreases in rent prices since December 2014*
Studios in Greenpoint (down 18.14%)
*It is important to note that these neighborhoods had 10 or less studio listings at the time the sample was taken, a minimal number compared to other Brooklyn neighborhoods
The largest annual upward shift in rent prices
Boerum Hill rents increased from an average of $2,673 in January 2014 to $2,983 in January 2015, a 11.6% increase
The largest annual downward shifts in rent prices
Greenpoint saw a decrease of 10.0% from $2,904 in January 2014 to $2,615 in January 2015
Notable additions to the market
1 North 4th Place, a 510-unit amenity-rich luxury rental development on the Williamsburg waterfront
395 Leonard Street, a 188-unit rental development on the former Meeker Flea Market site saw various listings enter the market
DUMBO: The annual average rent increased by a substantial 9.9% from $3,918.58 in January 2014 to $4,308.27 in January 2015
Williamsburg: Inventory increased 18% from 638 in December 2014 to 754 in January 2015 due to influx of new listings from 1 North 4th and 395 Leonard Street
Average studio pricing: $2,104, down from $2,136 in December 2014
Average one-bedroom pricing: $2,547, down from $2,552 in December 2014
Average two-bedroom pricing: $3,348, up from $3,313 in December 2014
In Dumbo, the annual average rent increased by a substantial 9.9% from $3,918.58 in January 2014 to $4,308.27 in January 2015. In Dumbo for January 2015, studios were $3,160 (vs $2,955 in December 2014), one bedrooms $4,091 (vs $3,943 in December 2014), and two bedrooms $5,674 (vs $5,751 in December 2014). Here are the Dumbo price trends over 13 months for studios, one bedrooms, and two bedrooms:
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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.
Someone’s dream apartment just went on the market in Dumbo Brooklyn. The Real Deal reports that the largest penthouse unit at One John Street has been put on the market for $8.8million (or $2,400 per square foot) today. The 4 bedroom (plus 1 home office), 4.5 bath, 3,657 square foot condo will include a 693 square foot outdoor patio private space (with a gas grill and outdoor fireplace) facing the Manhattan Bridge, overlooking Manhattan. One John Street is a 12-story, 42-unit condominium project in Brooklyn Bridge Park in Dumbo designed and developed by Alloy Development and Monadnock Construction.
The Real Deal points out that this penthouse condo is one of the most expensive condo units in Brooklyn to date. It has 27 extra large windows. The two other condo units in Dumbo have a higher asking: The penthouse unit at One Main Street offered by Corcoran for $18million and a 5 bedroom, 4 bath, 4,187 square foot triplex at the Pierhouse is on the market for $10.5million.
The NYC Department of Transportation (DOT) presented a plan to the Brooklyn Community Board 2 Transportation Committee on January 20, 2015 that proposes several updates to streets in Dumbo on 5 key street corners and sidewalk areas. As a result of a community walk-through organized by the Dumbo BID, DOT has developed this proposal to calm traffic, improve pedestrian safety, and improve pedestrian and bicycle access in the Dumbo neighborhood. The proposal fills gaps in the pedestrian network with new sidewalks and pedestrian spaces at underutilized roadbed locations, and accessible crossings. A two-way bicycle facility is also proposed on Jay Street.
The Community Board 2 Transportation Committee unanimously (with one abstention, 11-0-1) recommended that Community Board 2 support pedestrian safety improvements proposed by the DOT two weeks ago.
Streetsblog NYC reported that the DUMBO Improvement District director of marketing and events Kristin LaBuz attended the meeting, where the plan advanced to the full board in an 11-0 vote. “Though there is still much work to be done in the neighborhood,” she said, “we’re thrilled by DOT’s responsiveness to community concerns.”
The five areas for improvement are as follows:
York St and Washington St: build concrete sidewalk extension, mark parking lanes and bike route, and potentially add parking to the south curb.
Pearl St and Front St: build concrete neckdown and granite paver crosswalk
Pearl St and York St: build large concrete triangle island and painted pedestrian space, with two granite paver crosswalks
Jay St and Prospect St: build large curb extension on NE corner and neckdowns on NW and SE corners, mark crosswalk on the north leg. Potentially add parking along new concrete.
Jay St Corridor: mark contraflow bicycle lane between Prospect St and York St, mark two way shared lane between York St and John St.
In addition to the added safety for pedestrians and cyclists, the proposal adds approximately 15 parking spaces. DOT plans to begin construction on the project in August 2015.