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.”

Inventory

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.

Vacancy Rate

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.

Previously:
{Dumbo Retail Report (Dec 2011)}
{Dumbo Commercial Real Estate Update (Nov 2011)}

DUMBO Startup Lab (not to be confused with the Dumbo Incubator) launched for business last month. DUMBO Startup Lab is a an affordable, flexible and convenient communal work space for entrepreneurs, freelancers and startup companies. Similar to other co-working spaces such as Loosecubes, the goal is to create a synergetic atmosphere for innovative thinkers and developers. As Dumbo becomes the base for more and more startups, the DUMBO Startup Lab fosters the entrepreneur, freelancer, and designer collaboration. They also host community meetups, networking events, panel discussions and creative workshops.

DUMBO Startup Lab’s rates are lower than similar co-working spaces found throughout New York City. Portable desk rates start at $200/month and stationary desks start at $300/month. There’s no deposit or binding time commitment. Another great option for co-working space in Dumbo.

DUMBO Startup Lab (dumbostartuplab.com)
68 Jay st. #415 Brooklyn, NY 11201

(30 Henry Street)

(231 Front Street)

The Landmark Preservation Commission reviewed proposed changes for 231 Front Street (Vinegar Hill) and 30 Henry Street (Brooklyn Heights) in today’s meeting. No word yet on the results.

231 Front Street is an Early 20th Century commercial style factory building, designed by William B. Tubby, and built in 1908. The application is to alter the façade, rebuild entrance stairs, and install a canopy. Brownstoner mentioned in October 2011 that the plans for 231 Front Street is to convert the building into office space. (BIS for 231 Front Street)

30 Henry Street aka 28-30 Henry Street is a building reconstructed in 1963 as a factory and store building. The application is to demolish the building and construct a new building. As the Brooklyn Eagle has reported, the proposed new building will be five stories and will contain six residential units with balconies. Additionally, the building will contain underground parking and outdoor space with a waterfall. Currently, the building is home to Brooklyn Daily Eagle.

(Photo from Brownstoner).

From Mighty Tanaka Gallery:
Look around you; the world is full of art. We all know the saying, “One man’s trash is another man’s treasure”, however, some individuals choose to take that phrase to heart. Artists from a range of disciplines utilize a world of scattered debris, creating an array of striking creations from the items that many people would find worthless. Mighty Tanaka is pleased to bring you our first show of 2012 entitled Lost & Found, a group show of found objects and the artwork that is created from them. Featuring the vision of Adam Void, Alice Mizrachi, Curtis Readel, ELLE & John Breiner, each artist represents a unique idea of the world through their chosen method of creation.

Lost & Found intends to demonstrate a cross-section of aesthetic interpretation of objects that are generally taken for granted in daily life. Artwork made from found materials provides the artist with an endless amount of inspiration, as all the necessary components are easily accessible and free to use. This is the art of the juxtaposition, both complimenting and conflicting itself, as the work is literally born from the streets and transformed into something that is new, exciting and fresh.

Through the usage of mediums such as old beat up currency, abandoned pieces of wood, detached doors and tattered textiles, the artist is able to rebuild forgotten memories and forge them into a new identity. Lost & Foundoffers the viewer the opportunity to reconnect with the pieces of the past and the chance to begin anew.

Lost & Found Opening Reception:
Friday, January 13th, 2012, 6:00pm – 10:00pm
(Show closes February 5th, 2012)

Mighty Tanaka (mightytanaka.com)
111 Front St., Suite 224, Brooklyn, NY 11201

(Photo by Josh Derr)

The following are selected links from this past week on blogs and websites with discussion about Dumbo (and its neighboring areas):

• Looking Back at 2011 in Brooklyn, 04Jan2012, BK Eagle
• Human Remains found in Vinegar Hill in 1990, 05Jan2012, NYT
• Brooklyn 12 to watch in 2012, 01Jan2012, Brownstoner
• Brooklyn Blooms 2011, 01Jan2012, Crain’s
• Exploring Brooklyn the Artisan Way, 19Dec2011, HuffPo
• Brooklyn Heights P.S. 8 May Expand to Middle School, 19Dec12011, BK Eagle

The past couple of weeks seemed to be Dumbo tech week:

• NYU-Poly’s new DUMBO Incubator, 21Dec2011, NYCEDC
• Tech Cluster in Dumbo Paving Future of NYC, 07Jan2012, Economist
• Flow CEO Says Dumbo is World’s Data Exchange, 27Dec2011, NYDN
• Brooklyn Startups Learn from Eachother, 23Dec2011, BI
• Dumbo based Offtrackplanet.com, 30Dec2011, NYDN
• Unemployment’s High, But Not in Dumbo, 28Dec2011, BK Eagle
• More Land for NYC Tech Start-Ups, 18Dec2011, Forbes
• As I Was Saying About Tech In Dumbo…, 20Dec2011, Forbes
• Miami Ad School Opens in Dumbo, 19Dec12011, Mediabistro
• Don’t Forget Brooklyn: NYU’s plan for the old MTA headquarters, 19Dec12011, BI

Celebrate the debut of nerd nite: the magazine with presentations, dj’s, a dance party, and more. Tonight at Galapagos Art Space.

Friday, January 6, 2012
Doors at 7:30pm
Presentations start at 8pm
Followed by DJ & Dance party

For more information and tickets, go to galapagosartspace.com/event/nerd-nite-magazine-launch-party.

That was fast. The two most expensive condo units at 205 Water Street, the new Toll Brothers development are under contract. Unit #7A, a 3 bedroom, 2.5 bath, 1,866sqft condo is in contract for $1,959,990 ($1,050/sqft, cc $2,047/mo, $678/mo taxes) includes a 782sqft terrace and was on the market for only 17 days. Unit #PHN, a 3 bedroom, 2.5 bath, 2,187sqft condo is in contract for $2,296,990 ($1,050/sqft, cc $2,785/mo, $922/mo taxes) includes a 2,344sqft of combined terrace space and was on the market for a month and a half.

Penthouses at another development at 37 Bridge Street (aka Kirkman Lofts) have recently been put on the market and the building is 70% sold.

The new condo re-developments on Water Street and Bridge Streets are moving quickly. Realtors we spoke to recently told us that larger units in Dumbo sell very quickly as more families are looking to move into the area. The large lofts at 192 Water Street sold very quickly. According to Streeteasy, there are two active listings at 192 Water Street.

For those looking for that trophy condo in Dumbo, the $23.5MM Penthouse at 1 Main Street is still on the market.

The First Thursday Dumbo Gallery Walk is tomorrow, Thursday, January 5, 2012, between 6-9pm. Gallery specific information will be published on the Dumbo Improvement District website, dumbo.is.

The gallery walk is free. (Thank you to Dumbo Improvement District for the images).

(Photo: Emily Berl for The New York Times)

Two Trees Management principal Jed Walentas was featured in The New York Times Sunday Real Estate. At 37, he looks “more Silicon Valley entrepreneur than big-city real estate tycoon”, but runs the real estate management firm his father built by buying two million square feet of former factory and warehouse space between the Manhattan and Brooklyn Bridges in 1981 (for $12 million) and creating the most expensive neighborhood in Brooklyn. Mr. Walentas tells the NYTimes that he wants “to find ways to better connect Downtown Brooklyn with the thriving neighborhoods that ring it. With so many college-age students attending classes — but often not living — in that section of Brooklyn, he said it mystified him that more hadn’t been done to keep them there.”

He not only has influence on Dumbo, but neighborhoods stretching from the West Side of Manhattan to Fort Greene, Brooklyn. He also supports entrepreneurs and the tech community, when he helped present the Dumbo incubator last summer. He also contributed a piece on Brooklyn Eagle on how AT&T, an international corporate entity is supporting the local community.

Bruce Ratner, the president of the Forest City Ratner Companies, which is developing the Atlantic Yards in Brooklyn said

“Battery Park City is a great place, but it does not have the same sense of character as Dumbo. Rockefeller Center, on the other hand, has a definitive sense of character, because “the Rockefellers had some idea of what they wanted that place to be.”

In Dumbo, he said, the guiding vision was to retain the area’s industrial flavor (without the industry), while providing a street-level experience both diverse and interesting — even if it means subsidizing rents for small-business owners and declining the high rents offered by big-box stores, or selling off properties and cashing out.

“Jed holds firm to the vision,” Mr. Ratner said. “And that is not a minor comment.”

High praise from one of the more well known develpers. However, Judy Stanton, the executive director of the Brooklyn Heights Association has been a critic has battled with both David and Jed Walentas over numerous projects, including the controversial Dock Street project.

Read the article to find out why attracting diversity is important for NYC, why real estate prices are so high, and how he and Donald Trump differ in their styles.